Overall, I think your gear selections are quite good, and I would have trouble arguing against any of your choices, with perhaps one exception (regulator). Like several others I would suggest an Apeks DST or DS4 first stage, with two XTX50 second stages, as a better regulator selection. You really are not planning to dive in conditions severe enough to require the touted benefits of the MTX-R, so you would be paying a premium price for something you really don't need. Go with a solid DST or DS4, with twin XTX50 second stages, and apply the difference to a metal backplate NOW, rather than renting BCDs un til you can buy a plate.What do you think of this gear set and how should I improve it?
As for your question about a dive knife, since I use only EMT shears, and a 1 inch folding Buck Knife as a back-up, I am possibly not the best person to answer a question about a dive knife. If I use a dive knife / tool, a short, blunt-tip Wenoka meets my needs just fine.
Of the two lights you mention, I think the 720R is a better approach on the basis of size - it is at least 3" shorter than the 720. But, I think you may pay a bit of a premium for the rechargeable dive light. I have not found a need for a rechargeable light expect in my canister light. I have a Big Blue CF450 which I really like, because it uses batteries AND it has a 'real' on-off switch (magnetic) rather than a 'twist on - twist off' switch, and it is relatively short - fits in a Goodman glove on my hand. Now, I acknowledge that my choices reflect my personal preference, and the ScubaPro light is nice, just not my cuppa.
It makes sense, to move as much weight as possible to a position adjacent to your physiologic center of lift - your thorax. To some extent, the answer to your question does depend on your inherent physiologic buoyancy / trim characteristics, to which we do not have access - only you know if you are 'heavy legged', 'light legged', etc.As such, was planning to buy the Dive rite xt fins, instead of scubapro jetfins - less weight on feet and maybe move 4 lbs to tank pocket, when using a wetsuit, drysuit. Does this make sense or should I take another approach? (without buying a weight integrated BCD).