I find it annoying that cards with a strategy rating of a certain type of 0. (Maybe with reducing effects) may not participate in a battle with that rating. So I would suggest changing it to.
"Only cards with a [type] strategy rating can attack during the [type] phase."
Not tested yet, but as far as the rules look, it seems having a lot of armor puts you at a great advantage, no matter the attack ratings. I hope there will never be a card with more than 2 armor.
I would suggest moving rank up to the title line, and moving armor above movement and under the attack types. Doing this would place all nescessary combat stats together so they could be seen in a single glance. Rank is off less importance for combat, and would thus be better by moving it to top.
1. adding a home card to the reserve zone of every player. attacking of reserves is unlocked if you control 2 terrains, destroying the home card wins the game.
I am for it, the home card could contain a reference to your faction and turn structure, but is otherwise generic. It shouldn't be able to be attacked, mostly because you want it to remain terrain control game. (Which I like. Also, the home attacking could allow serious griefing.)
2. putting all cards in the same deck. but i am against it. personally i hate multiply decks in CCGs. but the terrain deck is removed after game start and the god deck is not really a deck - more of a sideboard. i explain the gods later in detail.
Well, the terrain is set up at start, so nobody should care about that. Don't know of the gods, but I think it's smart to keep them apart. Also, there are only 6 cards, so nobody should care much.
3. health tracking. well im for it. i dont care the additional book-keeping. This is a wargame after all!
Bleed them dry! Only matters on heroes or high-ranked guys. Keep the hp tracking.
4. adding additional victory conditions or adding victory points to allow more types of victory (im against, i like the refreshing and simple terrain control approach).
Fan of victory points, but they don't work in your approach yet. If you want them, you should have each terrain generate X victory points each turn for the player that controls it.
Additional victory conditions should only be done on cards. Make them sparse and meaningful.
Thats all for now.