Certainly, the licensing issue contributed to it, but it's also because of the fact it was collector-oriented. Stores weren't quite so interested, so they only purchased a given amount. You had uneven distribution of characters and whatnot. There was also, of course, waning interest, most prominent during the closing of the line. As for Binaltech, Alternators actually had more characters, what with the store exclusives like Jaguar (yes, the car brand) Ravage and Rumble. You do have some deco differences, but I suppose you're right in that Binaltech had some exclusive characters of their own. Alternity, yes, is a continuation, but the downscaling was in part due to the questionable success of Binaltech. You do see an improvement in design, however.
As for your perception of Classics, Universe 1 & 2 as being a variation of Henkei, you'd be surprised to find that the American deco was the original. The Henkei line is a series of redecoes of the figures to make them more G1 accurate and add unnecessary chrome. You can also establish this by examining the fact that the Classics figures were released together with Universe figures, despite their original years apart at the time of their design.
Now, for die-cast metals and whatnot. Structural integrity can be compromised by the use of die-cast parts. In some ways, such as die-cast in the legs, can prove better in that there is more weight in the feet so it is better supported. However, if you place die-cast in the chest or elsewhere, you may find yourself unable to prop the figure up properly. Certainly, die-cast is much more durable than plastic, but you also have to consider the other downsides. Die-cast weighs more, so yes, in the feet of a figure, it is good, but elsewhere, not so much. It can also cause more stress on joints, making breakage more likely to occur if you drop it. Also, due to its weight, shipping costs increase. And additionally, the die-cast metal is usually put in smaller quantities, or in thin forms, rendering the strength factor of it null. The metal also has to be its natural color or be painted on, whereas plastic is more easily molded into its intended color. You can look at some G1 figures, where its die-cast parts are prone to breaking, like Prowl's roof, and while it isn't necessarily the die-cast's fault (the plastic of the 80s was more fragile and the construction wasn't exactly smart), it breaks nonetheless. Perhaps in the future die-cast can be better implemented.
Yeah, vidjagames. ._. I suck at them, though, so I'm uninterested.
As for recognizing characters, I myself as a kid barely could name characters. All I remembered from RiD was Optimus Prime, Megatron and Ultra Magnus.