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Variety is definitely better. In Heroes 5, there's hardly any room to explore different spell choices. Look at Might and Magic 8, where there are also identical spells:
e.g., Flight (air magic & dragon abilities)
e.g., Charm (mind magic & vampire abilities)
But of course, too much is also bad.
e.g., in the game TES III: Morrowind, there are many spells that are identical.
e.g., Levitation and Wild Levitation, as well as 6 types of Shield spells.