I'd make a lot of the same changes as you, with some tweaks.

The embassies would be smaller, but there would be more of them (none in Seanchan run lands unless the damane system is dumped). The Allowance would be handed out no more. Instead sisters would be paid if they chose to work in cuedillar/'angreal workshops or other Tower run institutions.
Ajahs would be dissolved, sisters wouldn't be restrained what they work on for life.

All this would have to wait, for until Tarmon Gaidon a more militaristic system would be required.