Alright. Time to compare some of your stuff to other cards and maybe give some more constructive criticism this time.
Magician of Faith has only recently been removed from all aspects of the ban-list, and all it does is return a Spell Card. It didn't get banned because it had too many points. If that was the case we'd see Little Trooper being banhammered. Though I fail to see how that little thing gets away with what it does. Anyway, I would suggest maybe changing the effect of Artificer from any Spell or Trap card to a Normal Spell/Trap card. Or something along those lines. That means that it only returns Spells/Traps that have no symbols beside "[Spell/Trap Card]".
I might also suggest loosening some of the DEF. Go for somewhere around 1700 or less, as a rather common value for Level 3 Flip Effect Monsters is 500/1500. A Flip Effect isn't going to become inactive simply because the monster is destroyed. The only instance it doesn't activate is when it's destroyed by a card effect, in which case the extra DEF isn't going to help much. A notable exception to this is the altogether too powerful Des Koala. Don't take a leaf from its tree, please.
The first thing a notice: [Level 4; 1600/1500] vs [Level 3; 1600/1700]. The Level 3 has more points for some reason. Next I look at their effects. Lone Warrior has the same ability common among the Mystic Swordsmen. However, this only works if another Warrior-Type monster is face-up on either player's field (at least I'm hoping that means Warrior-Type and not "Warrior"; the latter is a part of a card name, such as Junk Warrior; needs clarification). Not a bad card. In fact, I'd say this is one of the cards you've made that I have the least amount of criticism toward. Then we look over at the Fairy. Well crap. This thing deals me a nice 800 damage when it flips, plus it's got amazingly high points to boot? Well not even Cir, Malebranche of the Burning Abyss is that good. This thing just left Lone Warrior in the dust.
Honestly, to fix this, I would say Fairy of Embers needs a drastic cut in its points and a reduction of the damage to 500. Why? Embers' ATK and DEF together beat that of Poison Mummy by 500 points. Then it deals 300 more damage. And Poison Mummy is a Level 4 monster. Even if Fairy of Embers was a Level 4 monster, I'd have to require it to be cut back in power. As it sits right now, this monster has the power of a Level 5. Not a great Level 5, but a Level 5, nonetheless.
Honestly, going over your first five Fairy-Type monsters, I would say that the entire archetype, as it were, needs a little bit of tweaking. As these seem to all fit together as Elemental Fairies, lets make them seem to fit together. Firstly, there seems to be a majority ruling for Flip Effects. Let's keep it that way across the board. Secondly, we can give them powerful points, but at least Embers and Light still need to be reduced. Then, to balance their powerful points, we restrict their effects by doing something as follows: "FLIP: If you control another Fairy-Type or DARK monster: Target 1 face-down Defense Position monster your opponent controls. Destroy that target." (Example is a rewrite of Fairy of Shadows)
Others should have similar restrictions. Perhaps Fairy of the Light would require you to reveal your entire hand, but you have to have two or more cards to activate it. Fairy of Waters should probably be a WATER monster with 1200 or less ATK that is Special Summoned in face-down Defense Position and returned to the hand during the End Phase. With Fairy of the Earth, perhaps reduce the Special Summoned monster's ATK and DEF to 0, but cannot be destroyed by battle and said changes last until the End Phase.
Iron Stroke Blacksmith I won't spend too much time on. Just nerf his points a little or make him Level 4 and he's good.
Flammeum I have no complaints with.
Ignis seems a little OP'd, but I have a bit of trouble coming up with a good solution.
Wielder of the Water Sword seems good. I'm not going to mess with it.
Wielder of the Sword of Shadows could actually have more ATK. Probably more like 700.
Cast out of Heaven is one of those that is unspecific with what kinds of face-down cards it can destroy. Say instead: "Tribute 1 LIGHT monster you control. Destroy up to 3 face-down Spell/Trap Cards on the field." This makes this card suddenly very usable in Artifact Decks because it can destroy your own.
Dead Man's Last Call is a good turnaround card. Very quick power, but if you fail, you take some painful damage.
Maybe you should make Elemental Harmony require banishment of those 4 monsters. Banishing is always a good cost.
Fairy Lance is clean.
Dawn to Dusk needs to be "you can Special Summon" so it's not mandatory, otherwise your opponent gets to check your Deck every turn after you run out of Fairy-Type monsters to Summon with that effect.
Legends Begin could be that it can only activate if you control no monsters rather than once per turn, and I think it would be more fair, though still will be either Semi-Limited or Limited because look at where RotA was for the longest time.
Mystical Fire Typhoon is now good.
Cursed Sword is balanced.
Dead Man's Hand should probably be a Normal Trap
Hold the Line is conditional, but it's fine.
Don't have Counter Traps Summon Tokens. And get rid of the restriction. Just summon the tokens. They need a Type, though.
Time of Peace is worded oddly. Perhaps rewrite like this: "Activate only during the Standby Phase. Skip the next two Battle Phases." This allows for an all-around fair balance.
"Face-up" before "Attack Position" is unnecessary. And cows. Time of War gives a Mirage Knight effect. Again it seems a little oddly worded, but fair enough, I suppose.
Life-Giving Phoenix just needs the 1000 LP gain. Get rid of the draw effect. (Yes I'm being picky now.)
Let's go protector of all Fairies!
Wielder of Fire and Ice: Effect reminds me of Colossal Fighter + Adreus, Keeper of Armageddon. Maybe have it only gain the ATK while it has Xyz Materials?
Sanctum I thought was going to be cannot attack directly if either effect is used.
So you've got some good and some not-so-good. Just go through and edit each where appropriate.
