Personally my biggest complaint about AYM right now is that there's a distinct lack of actual tension or struggle; the resources the protagonist can call upon are so absurd, his position is so secure despite all his internal claims to the contrary, and his putative enemies are so slow to respond, that I don't really have any reason to believe once a real conflict actually erupts it won't be snuffed out almost instantly barring the kind of absurd escalation that tends to rip my SOD to shreds.
Like, Han De has access to an army of top-tier mooks willing to do anything he tells them to without qualms or questions, including ones who are multiple levels above himself, he has access to so much money and valuable resources that he can buy literally anything that's on the market anywhere, and if he really got desperate he could just ask his mom to kill everything in a given direction and so far we've been led to believe that basically no one could stop her once she got started. This all not even counting his and his disciples' growing OP-ness thanks to his system.
I also tend to just have this "thing" against isekai/transmigration/whatever protagonists who always assume this world they're in runs exclusively on whatever genre's cliche fantasy-story logic or video-game logic, and are almost always totally correct to do so. It takes me right out of the world that I should be getting immersed in when the protagonist just keeps thinking, "Oh, next this is going to happen, because this isn't an actual world it's just a fiction story that works on very obvious cliches at all times" and then usually gets proven correct.
Hmmm... pondering...
- I think that one of the strengths of the xianxia genre (such as it is) is the thing where the protag's life (or something else critically important) is on the line, they're up against something they can't handle, they find some way to power up and overcome that, and they reap the rewards. It's a bit of a cheap thrill, but the entire genre is a bit of a cheap thrill, and it works. The real problem with it is the side effects of warping the world that it has. The answer there is that you make it about the trials and successes of the disciples, but you put the mentor's life on the line. I think AYM got that one dead on, actually. Regardless, in order for this to work, either the mentor has to not start out all that powerful themselves, or that power has to be something that can't be used to solve the real problems.
- You don't like the way the AYM protag has absurd resources and is never under real threat (other than the system), you don't like the system itself. Okay. Cool. Let's leave that stuff out.
- I think that there's also something to be said for the xianxia idea of a cheat. Doesn't have to be a System, or isekai advantages or whatever, but the idea that the protagonist has something in particular about them that makes them awesome in a way that the opposition simply doesn't have that they can just keep leveraging is another one of those cheap thrills.
So... I have a couple of ideas.
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First idea: Reincarnator, but *not* isekai. The protag was learned in the Dao, but didn't quite manage to make it to immortal. He died, and is taken to be judged by the appropriate divine authorities. He's generally avoided being an asshole, so he's not automatically slated for punishment in the demon realms. He's been a bit too much of a character to automatically transcend to the *good* afterlife, and he's advanced enough in cultivation that he gets the personal attention of someone high enough up in the hierarchy that they can pretty much make the call themselves... and they offer him a deal. You see, one of that god's jobs is to make sure that certain Destined Heroes achieve everything they're supposed to... and he *hates* that part of his job. So the MC gets assigned to play Divine Spirit advisor to a series of eventual heroes - essentially to be their first and most critical Fortunate Encounter, and teach and guide them until they can achieve what they're supposed to achieve. Then, on to the next one. If he succeeds enough times, he can either go to heaven or reincarnate properly. If he fails (ever), he's either sent to the hells or consumed for power or something. Any exposition you need, you can get from him telling his disciple-of-the-moment or thinking ahead about how to arrange things for them. You can give it a reasonable xianxia power curve, but then pull away before it gets to the absurd world-breaking, and jump to someone else.
He'd basically be running half on whatever lore he had personally (pretty deep, but not always broad enough to cover the current situation), and half on scamming and scheming. He's also aware that he's in this for the long haul, so he's constantly trying to pick up whatever cultivation techniques or bits of lore he can that will give him an advantage next time. He doesn't have any sort of real cheat, but he is really very good at Perception and Comprehension. It's just that his overall cultivation taent was always kind of mediocre, and his luck was poor. Well, now he's playing spirit mentor to a series of kids who have luck levels driven by a Great Destiny. Let's see what he can do with the kind of arts *those* kids pull down.
Of course, he can't really use them for himself. He's trapped in a ring, after all (or whatever)... but he can learn them, and remember them, and possibly customize them or hybridize them, and share them with the next Destined Hero to make his life that much easier as he goes. It also doesnt' exactly give you your "build a sect for myself" effect, or at least not until the sequel, when he earns his freedom form the ring, gets a new shot at life. At that point, he has a library of powerful cultivation techniques in his head, he's developed something of a joy in teaching... why *not* start up his own sect? This world could really use a sect devoted to well-meaning rogues and scalawags.
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Second idea: Scavengerpunk cultivation story. The primary protag, again, is really good at perception and comprehension, but there's something about him that limits his ability to actually fight effectively - like, he has some special bloodline or something. On the one side, it makes him really good at understanding cultivation techniques and their implications and whatnot, which helps him out a lot in refining his own cultivation. On the other side, it seriously hampers his ability to gather raw power, which means that he's constantly having to figure out cheats and exploits whenever he wants to rank up, and he has a real disadvantage against peer opponents in a fight.
Story starts when he gets his hands on some discarded, broken scraps of a cultivation technique and manages to stitch it together into something workable, and tries to cultivate as his way out of the hellhole. It's great for a little bit, but he soon realizes that, while the benefits are clearly there, he's not getting nearly the improvement that he ought to be getting. He investigates this in various ways (bribing some sort of washed-up drunkard of a sect outcast?) and figures out what's going on, and also hears enough to figure out that his abilities at Comprehension are absurdly high. He figures out, though, that there are a *bunch* of kids out there who'd love to be cultivators, and if he can pick the right ones and teach them....
Basically, he winds up running a "sect" from really early on, but the sect in question is composed of street rats with random mongrel bloodlines and strange mutations, and he's constantly greedy for more scraps of cultivation lore, because he's constantly having to adjust cultivation techniques to account for their sporadic resources and the fact that none of his sect-mates are exactly normal as far as these things go. He also has to keep figuring out the tricks of making his own breakthroughs because if he can't stay ahead of his sect-mates on climbing the stages, they'll stop being willing to have him as their teacher.
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I'm not going to run either of them myself, but if anyone takes inspiration from either/both (or just wants to steal them wholesale) you do it with my blessing. Also, I want to know where to go to read it once you start posting it.