While Hook at 15 is unfortunate, he is the only Welsh player to look somewhat solid back there recently. His running isn't as good as a 15's should be, but his kicking game will be a necessity.
No problem with Priestland starting at 10. He played well there in the Summer tests and certainly merits selection. Charteris over Davies is the most bizarre selection, probably due to lineouts as others have said. I hope Alun Wyn can put on a few more performances like the one against Argentina.
Shame Ryan isn't fit, he looked like he was finding some sort of form. Faletau had the nod over Powell in defence, but he will need to calm down when he gets the ball in his hands. We know what he can do, he just has to step it up.
North v Halfpenny was a tough call. North has been in excellent form, while Halfpenny has been stuggling with injuries but when on-form a very capable wing. If Priestland/Hook struggle I'd expect to see him used as a fullback.
For once, I am not too worried by Bennett. Based on recent form he was improved drastically and pops up in the loose quite often. I only wish we gave Ken Owens a shot before the World Cup.