I agree with almost everything you said here, but would add caveats for Gunnar, Kailani, and Gill-Ra. These three can be useful for staying alive if you are outmatched or trying to complete a level with less than recommended team power. However for general purposes I find them too slow and clunky to bring out regularly. Being slow mana without a direct impact makes them difficult to use in raids, which will be one of the key uses for 3*s in the future with weekly raid challenges.
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This is who I currently have. I have leveled up some Buc they were the only ones I had at the time I I did a lot of quests to get recruits.
Actually, with the introduction of the class system, you also want to make sure you keep a variety of different classes. For example, Greymane may be a very mediocre hero; but if you lack sorcerer heroes, you might want to lvl up a Greymane for emblem challenge quests.
I figured, based on a few of the raid challenge rules we’ve seen, Kailani and Gunnar would be even better actually (very fast, and for their buff), and Gill-Ra could have her place as being the only other non-blue 3* defense down hero, but I don’t actually know that for sure. Personally, I don’t use Kailani, Gunnar or Gill-Ra. I do have Gill-Ra, and haven’t used her much, but with these upcoming WRC, I’m now going to start leveling one copy of each of the spirit linkers too in case [to keep on hand]. They do work well for people who are still using mostly 3*, or for those without Wilbur, since they’re the only form of spirit link available to the masses ie not behind a paywall.
I do agree, once you’re further in the game and have Wilbur, Grimm, etc then Gill-Ra, Gunnar and Kailani become a lot less useful aside from the beginner tier of challenge events, but even then they’re not all that useful either. Although, I do have hope for these weekly raid challenges, and think Gill-Ra, Gunnar and Kailani are worth keeping for now 
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When leveling up should I only use same color to level up or does red to green etc give as good of a boost?
Always do on-color feedings (so red to red, blue to blue, etc.) for the extra 20% exp bonus. Some people feed rainbow, but those that do typically have their rosters sufficiently leveled up already. While you’re still creating depth, on-color feeding is the best way to go. Personally, I do on-color ten at a time while I’m still trying to build their skill to 8/8; once maxed, then I just feed on-color whenever I pull them.
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Hanks Randa this has been a great help