Rule 0 works fine if you don't want to follow canon or want to house rule a few quirky things about the system, but that's not the problem.
The problem is that ST is a terrible system for Exalted. Rolling 20-30 dice for actions is extremely slow and makes combat take forever. Even slower than D&D. This is a game about over the top high speed action and the system doesn't reflect that. A simpler sytem like WUSHU or BESM would fit much better, which is why conversions to both of those are abundant. The problem with that is that despite such a terrible mismatch of setting and system WW managed to tie the two together in really interesting ways that let the mechanics evoke the setting. Switching systems removes some of this flavor, but its worth it.
And WOD 2.0 will not be d20. Rumors were abound about this and fans were in a tizzy all over the net to think their favorite system had sold out to consumerism. The rumors are false. WOD 2.0 will not be d20.
However, they are re-releasing the Aeon Contiunuum...Adventure!, Trinity, and Aberrant... in d20 format, which is an interesting choice. While I'm not a huge fan of d20 (after 3E burnout) I always liked those games and think they deserve a second shot.
Oh, and btw, welcome to the boards, Eagle.