I think you nailed it, Norhg. While the basic units should improve with those techs (squad size and training), a direct multiplier is ridiculous. Thinking of MoM, a unit of hammerhands for instance (dwarven unit), could be improved with mithril weapons if built in a city near mithril. They could achieve elite status, etc, but there was nothing like having a unit's attack multiplied by 36. That's just crazy. It was a solid unit when you could finally built it, and it could get better, but not THAT much better.
The basic mechanic MoM used of having 4-9 "individuals" in a unit made more sense too. As a unit took damage, individuals would drop out (lowering the attack proportionately). The attack was directly affected by the number of individuals in the unit, as was the health, but the defense was NOT. As the unit healed, individuals would come back (simple but effective). This system was simple and elegant, and it worked well.
The EWoM mechanic of having four people fight as a unit with exactly four times the attack AND defense of four similar separate units does not work. Just do the simple math - four units with 5 attack and 5 defense don't stand a chance against a unit with 20 attack and 20 defense. Not "they'll get beaten by", but "they will get steamrolled". The four-party unit will fight at full strength, even with 1 hit point left. It's a mechanic that simply does not work. It's a mechanic that seriously messes up army scaling.
I've just been talking about the four party unit. Add the full size party, together with the max training, and you've got a system that is VERY WHACK (technically speaking).