majoir, my personal theory is that it says something about colino's psyche. Notice the shape. I think it's telling us something. BTW, could I suggest a gravestone once you hit 6 stars? Or something to suggest that he's transcended and moved on?
Armor and weapons certainly do, but it would be nice to be able to add some sparkle as you get stars... Either in the gold shoppe or just every star you get a magical weapon, or a larger weapon, or so on. Just be careful about making the codpiece glow or you'll never hear the end of it.
orc totems are nasty, but not invincible. Their abilities only hit an enemy who's standing still. One who's moving they miss. And they can be taken out by a hobbit swarm, so...
holy swords won't hurt your people, they'll hurt enemies and toss some. They come up across the screen, starting from your castle. No special attack hurts the enemy castle.