You are right. It should of course be non-airbourne creatures. =)
By the way, we really need a term for non-airbourne that is shorter!
Thesaurus.com works wonders.
Yes, that was the idea. However, I didn't consider basilisk blood (was thinking more along the lines of bless, chaos power, healing angel (!) etc). As a balance consideration, an Otyugh with Basilisk blood will do far worse than continually infect creatures, and it will gain hp (and attack) along the way instead of losing hp.
Comparing this to Otyughs reminds me: quinted/burrowed creatures. I would say they are also affected, since this ability targets attacking creatures (think carapace/turtle shield). As such, I think the upgraded version does need a nerf. I'm thinking either increasing the cost (which makes for an all-round nerf) or decreasing the hp to 1 (which focuses more on the synergy with buffs, making it worse than the unupped for a mono water deck). What are your thoughts on this?
I agree about the balance comparison for the use of Basilisk Blood on an Otyugh versus the Urchin.
As for mono-water, Permafrost shield 'technically' can counter burrowed and immortalized creatures, but does no damage in comparison to Fire Shield/Thorn Carapace. Flooding also doesn't affect them - if you reduce the HP down to 1, what are the odds of infected an immortalized creatures when several of them are on the board? Assuming that they're all attacking, you may infect the wrong one (i.e. - with a board filled with Phase Recluses and an Elite Phase Dragon, guess which one is going to die in 2 turns). Then this card becomes overly luck based depending on how your opponent plays his creatures (and which ones are quinted).
However, I think reducing the HP can be beneficial for people who love buffing mechanics (Blessing, Momentum, etc.), and it would also bring a really annoying synergy between Earth and Water (Flooding + Poseidon + Permafrost (all the permanents enchanted with PA) + these guys with +20 HP from basilisk's blood + other heavy hitters). Then again, considering how limited it is to use the newly implemented cards (Dune Scorpion, Death Stalker) without the use of buffs, you may want to analyze whether or not reducing its HP is the best idea in the current game environment.
(No matter what though, I'd say you should reduce the cost to 1
for both cards. The guy is stuck on the bottom of the sea that can't even attack, and can be easily destroyed (or eaten!) by anything)