Very good essay, well-written and well-organized. As for the incest, I think the problem a lot of people have with it (besides that it's ew icky!) is the potential abuse of power a father might have over a child, or a sibling over another sibling. Ed is the eldest of the two brothers (although only by a year) and has the more forceful personality, and if Al were the wilting flower that some people think he is, I would say that there would definitely be a problem. But the brothers share responsibility equally (even if Ed flagellates himself by thinking he carries the burden alone); Al is just as devoted to and takes just as much care of Ed - and, IMO, he is the emotional and rational backbone of the relationship. So I don't think there would be any abuse involved, just a different form of love and affection.

Since everyone is adding their own fic recs, let me add mine to the pile. I heartily second the recommendation of rifurein; she's an incredibly talented writer and has a beautiful, deft touch with words. Another writer of her caliber is borntohula, who wrote a few short but incredibly good fic. My favorite of hers is Gate (http://www.livejournal.com/community/elricest/17261.html).