The lag problem is indeed annoying. Whenever I fix it in one place it seems to pop back up in another. For now try sticking with a 3v3 or smaller match-up and there shouldn't be nearly as much lag. I'm trying different triggers to figure out what exactly is causing it.
And the observatories give a large area of sight, kind of like a constantly casted level 3 Far Sight in ladder (but without revealing invisible units). There was an idea a little while back of adding to the Observatory a weak fountain healing effect, which would of course heal at a slower rate than an actual base fountain. However we deemed this to be not balance-able. I'm sure there's more ideas though.
Oh and to maareek, good eye for spotting the Mountain King primary attribute typo.
* I think the observatories give enough advantage at the moment - +150 gold on capture and a nice view over the "jungle" area is great.
* The Dryad seems to be a little overpowered (damn it, you might be going to nerf him

) -> it's easy to nearly if not completely max it's movement speed and to get a really big attack speed. This in combination with slow poison attack and increase agillity skill makes him a very fast and strong hero. Also it has a too big range and a very small projectile so you can attack opponents without them noticing and when they notice it's easy for you to catch up with him because of your slow poison and big speed. I think you should nerf this hero a lot (although I don't like you to, because I use him very often).
* I don't know if you've meant this, but an opponent can actually pick up your dropped items at your spawn, because the fountain is too slow to kill you for that. It's pretty nasty to have to drop items when making a recipe and an opponent fetches your items away.
* The level 20-30 jungle creatures are a little bit bugged. With a fast enough hero you can attack it a while, while moving backwards. After a while it will return to it's spawn spot and you can kill him without taking a single hit. This makes it easy farming and I think you haven't meant it to be easy

.
* Compliments on the Skink, it's well-balanced and very unique. The catapult can be used in many ways and the companion might look the same as the ultimate skinks, but he's a lot different and very useful for spying or acting as a shield. Maybe you should colour the companion different?
* Compliments on the spirit who appears when you die - it's a very funny feature, especially when someone doesn't know about it

.
* The Skink can throw it's dead body with the catapult - I think this is a bug. Whenever you die next to your catapult this bug is possible. And the bug can be a little bit more exploited: I once threw a living copy of my skink when I died close to the catapult. It never happened twice though, so it might be rare.
* Troll Priest is overpowered. First of all he has three nuke skills, THREE! You can nearly one hit kill opponents of around L15-20, when L15-20, which is too strong. Even late game he does a lot of damage.
* Troll Priest Frostbite is almost the same as Winter Bolt, since they both stun and do damage. Only the way of casting (Frostbite AoE and Winter Bolt single target) is different and the amount of damage, mana cost and cooldown. For me it feels like Frostbite is better than his Winter Bolt since it costs less mana, has lower cooldown and still does massive damage, even AoE damage! I think one of the two skills should be replaced (like you did with a lot of skills in the 0.97 patch).
* Jungling gives too fast, too much xp and money. There is a group of monsters, those of L8-10, that are not too strong for a L10-15 & up, but earn nearly 750g per group, 1500 (not sure about the amounts) when the two groups on the map are killed, and they give a lot of xp. I think you should lower xp and gold gain on this creep group.
* Jungling is a little too easy. Most creeps are easily killed and are only worth bothering for xp in later levels since they don't earn a lot of money (only the creep group mentioned above). I think the spawns must be more difficult.
* The first unit you hit in jungling sometimes (quite often) runs away. This way you can kill the toughest jungle-creep without him attacking you. I think this bug should be fixed.
* I don't know which hero and what skill, but there is a hero that can make other heroes fly away. With this skill, he can make people get stuck. This should be fixed (like the unstuck skill in DotA perhaps?).
I will give more feedback in the future, when Ive played it more (though I have already played a lot of games

).
Gr. Max