Interestingly, one of the things that really hurts the Empire deck is that people may choose Innovation over Warpstone Excavation if Empire is strong in the meta. Empire was very happy if people played WE since then the Haunted City was going to move it to the battlefield - which essentially made it a dead draw against Empire since you couldn't risk playing it.
Which restricted card do you pick for the Empire? It's not clear. Mining Tunnels and Innovation look like the lead contenders to me. Friedrich is a great finisher instead of Wilhelm but he's vulnerable to Master Rune of Spite. Hopefully Dwarves are enfeebled enough that MRoS isn't a big worry.
I think the first place I would go with Empire is the Order in Chaos setup to loop Verena. It has the big problem that if you don't draw Verena a lot of your deck doesn't do anything, although at least Hidden Grove gives you some improved defense till the Judgement shows up.
Overall, I think this restricted list is a great improvement for the game. I like the way that it knocks out the core 9 too since you have more "actual" slots in building.