-snicker- -chuckle- -guffaw- Oh, that is a beautiful one and I love it. It's fully canon compatible and a lot more logical than the explanation Dumbles gives in canon. I should also compliment you on a twist I've not seen before; those are rare and to be prized. I rather suspect Albus' confrontation with Harry's parents and Sirius was "exciting"; I'll firmly agree with Harry's thought about a "brave idiot".
Author's response
Thanks. I tried to keep it as canon compliant as I could, with Harry being forgiving, and all. Personally, I'd have ripped his soul to shreds and blasted the pieces out into Chaos for Clotho to regather at her leisure, but Harry is too much of a nice guy for that.
The hell of it is, it makes sense. Peverell "set it aside" when he was ready for death to find him, meaning he gave it to his kid, or grandkid, or whoever, but in order to make said kids, he couldn't be covered by the cloak all he time, just the power of the cloak. James, as the owner of the cloak, did the same, (or else Dumbles stole the cloak, in effect murdering James. But that's a whole 'nother bunny.) granting the power to Harry.
If it had been Lily's "Love" sacrifice, HP would never have been able to be turned into a horcrux, as it would have burnt away the offending soul fragment as it touched the kid. That didn't happen, so the protection of "love" had to be either a myth or a lie.
Quirrellmort probably died because of some protections Nick Flamel put on the Stone prior to handing it off to Dumbles. "Flame'l." He burnt to death. Coincidence? I think not. 4th year, he didn't have the rock to torch him with, so he was able to be touched, but not killed, due to the ownership of the cloak.
Personally, I think HP was unrealisic. Most people would have put a contract out on the MOB AND Tom, and been searching for private military operatives to give a list of names to, with them being at the top of the list. As soon as they were toasted, deal with the ministry as anarchy would be better than what they had, but it'd made for about a 250 page novel, instead of a 7 book series. A bit of gold and a bit of attitude adjustment for the WW and HP's life would have been easy.