"To overcome these limitations, some fungi, such as Armillaria, form rhizomorphs or mycelial cords" It was not until I searched "rhizomorphs" that it became clear that the term is synonymous with "mycelial cords". I suggest either making it clearer that they are the same or simply dropping one and keeping whichever is more prominently used in the literature.
"Characteristics shared with plants include a similar pathway in the biosynthesis of large organic molecules with important roles in cellular development and for defense, called terpenes." After rereading this sentence multiple times, it isn't clear if terpenes are involved in biosynthesis of large organic molecules and cellular development / defense, or if terpenes are involved in biosynthesis of organic molecules which are themselves related to cellular development / defense. The latter interpretation seems more logical, but if that is the case, why does this introductory sentence on terpenes complicate itself by introducing seemingly unnecessary information on organic molecules?
"However, the biochemical pathways for the synthesis of similar or even identical compounds often differ markedly between fungi and plants, which is shown by studies that have demonstrated that the fungal and plant enzymes for making these compounds differ strongly in their sequence and other characteristics, indicating that they have evolved separately in fungi and plants." This is a very long sentence. Consider slicing it into smaller sentences for better readability.
"More than 60 species display the phenomenon of bioluminescence of mycelia or fruiting bodies." This seems like a bit of a non sequitor for this paragraph. Perhaps it would be better placed in the Diversity section?