Spellcasters in AH seem to have a significant disadvantage. Even the designers have noticed this, leading them to make statements such as this to try to explain that spells are good:
"Why are spells good? On average, they give higher bonuses per hand than pretty much anything else, and they are Magical attacks. If you have the Sword of Glory, you're probably content with that, but 2 Shrivellings is about the biggest combat bonus you're going to see."
In combat, a spellcaster has to a) spend Sanity cost, b) roll Lore check, c) exhaust the spell. This means you may not succeed in casting your combat spell, thereby wasting Sanity AND having no real chance of making your combat check. When you do successfully cast, you better hope there's only one monster to fight because your spell cannot be used again. With a weapon, none of these problems occur. The case of a spellcaster having great combat ability (as with 2 Shrivellings, above) is very rare, and would put him at 1 Sanity after only a few combats. Again you're essentially disarmed, whereas with a gun or two you can get +6 all day. Lastly, unless you're fighting the Dunwich Horror or an AO, you'll never need +12 dice for any combat anyway.
It seems like spellcasters go through a lot of nonsense to get the same bonus you can get with a gun. So as combat characters they are very limited. Rather than get spells, why not send those characters to whip through the Unique Item deck, grabbing Magical Weapons not to mention Elder Signs while they're at it? I know combat isn't the only part of the game, but the great spells (Find Gate, etc) come up far less often than the slew of combat spells, each of which has multiple copies in the deck. If you don't get one, you're pretty lame next to just about anyone with a weapon.
Anyway, a couple of my friends and I were toying with the idea of making spells more useful because we're starting to wonder if there is any good reason to play a spellcaster. This is the kind of situation that makes me start looking for house rules. Here's two possibilities: 1) Remove some of the spells from the deck so there aren't so many copies of all the combat spells. They're pointless and way too common. 2) House rule that sanity cost is only spent if you fail the Lore check, in which case the spell works anyway.
I know this probably sounds extreme to many of you, but what is your experience with spellcasters? Don't they need some kind of tweak? Rather than a fun system, failing to cast is just annoying when you realize a gun is just as easy to get, doesn't cost Sanity, and (usually) doesn't exhaust.
P.S. This game is still the greatest thing ever.