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None of those options sound very witchy to me honestly. Maybe something like Xenonauts 2: Magic Reborn or perhaps Arcane Surprise or maybe even Xenonauts 2: Bet You Didn't Expect Mana Bars Did You? In all seriousness though the original title is best.

IMO the medal system in X1 is pretty much the best it could be. It's like a mini achievement system for each soldier, that while giving a small bonus, isn't something that you're forced to grind to play optimally. It adds more flavor then anything else. I'd like to see it expanded a bit with maybe some more harder to get ones, like 5 kills in a single mission, or weapon class (snipers, shotguns, pistols) specific medals. As a side note, I know the memorial wall was a CE feature, but if it makes a return in X2 in the base game it would be nice to see any medals earned by soldiers displayed by their name.