more like an editor that isn't from 1998
hammer is terrible. compare it to something more modern like the crysis sandbox with its real-time lighting and in-game testing and hammer feels ancient.
1996*
I actually do really like hammer though. Something with the same controls/editing style with added realtime lighting updates would be great. As long as it's still brush based. That's something I absolutely hate about modern engines.
Level design is becoming really boring with the only theme being "currogated metal or concrete buildings in terrain". Plus, what's the point of having something not require compiling for lighting and such when it's entirely model based? You still have to compile models and such, so you're not getting much of a benefit. Also, you can't design a good level with models. It's not easy to knock out a layout to test.
In game testing sucks right now. I would very much rather run the entire game each time I want to test. You cannot test a map properly in a viewport. Sure, you can check if you screwed up, but that isn't a problem when you're building it in the engine, that shouldn't happen like it does now.