I see your point of view.
Maybe more on that later.
For now - results of playtests:
0. A list of Arabian names is required. Actually, I had one made for my own attempt and you may use it (link was here somewhere, or just ask and I'll repost it soon).
1. Scouts & Spies require higher Stealth than +0. Currently, even independent Scouts have Stealth +10. And Spies with Stealth +0 are just unusable.
2. Dervishes die in droves. It's probably possible to prevent it with large masses and W9 bless, but even so it won't be so good a unit - though certainly able to cause much damage with F bless. I didn't test possible tweaks but currently they aren't so good.
3. Why so big Water? And almost no Air. Especially on Jinn it would be more thematic, I think.
4. Mullah is described as being judge, while having no such ability - or any other which would make him preferable to Mystic.
5. Vizier is described as mage of Air - and has no Air access.
6. Why Str 11 on beduin troops? I agree with Enc 3 for their cavalry - but this?
7. Marid Bei has no paths to summon lesser Marids. On the other hand, Ifrit Bei is very hard to summon without using Pretender.
8. Considering Pretenders - I don't think Fountains appropriate here. But Monolith and Divine Glyph would be. Some Middle-East-themed Pretenders also (Morning Star, Lords of Desert..., maybe even Shedu), as well as Virtue.
9. Considering Alhazred - I'd give him at least Summoning skill.
And yes, archers are quite usable - and would be even better with more access to Air! I don't see what do you mean by capital-only infantry, but they should probably get some weapon other than scimitar...