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Would it be so bad to make powers (other than smite) castable multiple times (and can be retried if failed) if they increased in difficulty by 2 each time?

Hmm. My knee-jerk reaction is that it would result in effectiveness spikes. For instance, you'd be able to try multiple times to warp time one unit (thus increasing the likelihood of getting that unit into position) or else able to potentially warp time multiple units. If you built your list around this, you wouldn't do it consistently enough to have a huge advantage consistently, but you might end up with games where you rolled well on your psychic tests and overwhelm your opponent with psychically-boosted units.