I would agree with your assessment. Fabulous album, and the one that got me into Blind guardian in the first place.
Will Edit in a few.
*EDIT*
OK, so I am not gonna lie. I am not as in love with Hansi as many Power Metal fans are, but when BG is on they are very on. Since this was the first BG album I ever heard, that might well impact why I still hold it apart from the rest. Tales from the Twilight World is probably right there with it though. As for why, IDK, there is just a vibe about those albums. I don't listen to them as much as I do other stuff, so it probably does impact my overall ability to evaluate them. For instance I know a lot of P-Metal fans that frothed over "At the Edge of Time" this year, which was a good album. But I rank it as the third best P-Metal album of the year at best, as i feel Sabaton's "Coat of Arms" and Avantasia's "Wicked Symphony" are much stronger overall albums, but I admit that is just my opinion.
BQ1: Top 5 Power Metal albums? That is a toughie.
Probably............. (In no particular order)
Helloween - Keeper of the 7 keys II (The Seminal Power Metal album, though I for one feel Walls of Jericho was almost as good, but keeper 1&2 truly set the blueprint for all Epic P-Metal to follow)
http://www.youtube.com/watch?v=niIIwVStGok
Iced Earth - Horror Show (Amazing blend of Thrash and Power, vocals off the charts)
http://www.youtube.com/watch?v=tL1pj0vpI8U
Nightwish - Century Child (One of the most "EPIC" sounding albums ever recorded, and my fave Symph P-Metal album)
http://www.youtube.com/watch?v=8Pjh0visgJI
Manilla Road - the Deluge (The album that introduced me to Manilla Road)
http://www.youtube.com/watch?v=ck-KzmR5gwk
StormLord - Mare Nostrum (Most epic mix of Black and Power Metal ever)
http://www.youtube.com/watch?v=hMs398QhHOk
and as a Runner Up... even though they generally are the epitome of cheese.........
MANOWAR - The Triumph of Steel (Actually a very well done album, and Achilles, the Agony and Ecstasy in 8 pts should be mandatory Metal listening!
http://www.youtube.com/my_playlists?p=E120D0028A408329
(I made a playlist since ain't no way to get it on one youtube)
BQ2: Female, still and always Tarja Turunen (Nightwish)
Male a close tie between Tim "Ripper" Owens (for full range and fury) and Matt Barlow, who IMO has the most nuanced and emotive voice in Power Metal.
BQ3: Yes, Faerie Tale Victory Metal is real metal! (Love ya Brian, lol.. just remembering our old wars back in the day =P)