I think it's cool that you've started working on an aether mod for minetest and I wish I could help you with that.
Sadly I haven't gotten around to teaching myself some lua, so I can't help you with the programming at this time.
But since I like the current concept I just wanted to give you some encouraging words and some ideas to add or change.
- First of all I'd adjust the minumum height to at least 1000 blocks, maybe even higher (e.g. 5000 to contrast the nether mod).
Second of all a floatier gravity could see fit in here (cf. Other Worlds/Asteroids).
And third of all I'd have to agree with the other comments about how the islands should be a little more spaced out.
This mod could also work very well with other mods if the beginning height and the end height are easily definable.
And once I get around to learing lua I might even be able to help you with the making of this mod.
But until then keep up the good work on this heavenly counterpart to the nether.
I'm positive the ather will be wonderful.