Tactical battle threshold has to do with whether it will auto-resolve a battle without even prompting you (like your 3rd comment).  You can toggle it so that the threshold between prompting and not prompting is higher or lower.  Sorry I can't get more specific than that I am not sure exactly how it works either.  I have it at the left most setting (I think) so that I get all the battles.

Don't know about the pace sorry

The threshold is how many people have to be in a fight before it gives you the option of tactical combat. If you always want that option, set it as low as possible (should be the far left).