Major flaws, no real point, but very fixable
This game existed in a slightly different incarnation when armorgames was still gamesofgondor, for those wondering if this is stolen, it is not. I understand you didn't want to make this, but if they armorgames wanted you to rehash it, you could have at least taken out some of the glaring flaws from the first version. Well, I'm sure you already know these but here are the most unfun flaws I experienced if you ever feel like rehashing this again.
1)The enitre power up scheme of battle is inherently flawed, if it weren't for the 2nd flaw of damage limitation by equipment, all that people would do would be to sit around and power up until they could both heal and kill at a reasonable rate. It needs to be ditched or modified so it isn't the (you have to admit, kind of boring) focus of the engine.
2) This is intrisically linked to the first flaw, but having damage limited by weapon or staff with no guaranteed way to get new weapons.
3) no real difference in enemy difficulty from different areas, slightly different attacks, but they keep scaling after each fight anyways. This one seems like it would be pretty easy to fix as well. Ditch the scaling. I mean really, what's the point of having different areas if the enemies are mostly of the same difficulty throughout? Again, I think you put this in because of the power up scheme, and again the fact that this side effect is so unfun is a sign to ditch it.
4)The random factor of the enemy's attack damage and number of attacks ranges from moderately annoying to seriously unfun.
5)The Defense stat as a whole is kind of useless. This again is because of the powerup scheme.
6)and of course, no real point to the battles. The little bit of plot you added to take it away from the original LOTR concept... hey, I can't think of anything better off the top of my head, but if you fixed this engine it would be kind of cool to make it a part of a larger game rather than a game in itself. The basic graphic interface is quite user friendly, it just needs different mechanics slapped onto it.