Hi there.
I just wanted to suggest that the mechanics behind "squads" are altered.
Currently a squad is basicly a more powerful kind of a unit with an animation displaying several soldiers. So when you damage the "squad" it still retains all of if attack and defense rating. I would like the squad to be weakened when damaged (some of the soldiers die). Of course some kind of bonus should apply to "squads" compared to a single unit. Instead of summing up the stat a more interesting way could be certain abilities - fx. a squad armed with spear could form a spear wall/phalanx (increasing defense, but decreasing combat speed). Some of these abilities could even be added to the tech tree.
A few possible abilities and some suggestion to what they could do:
Turtoise (shield formation) - Decreased damage from archers, decreased combat speed
Cavalry charge (wedge) - Increased combat speed for a turn, only able to attack 1 unit that turn but with increased damage - damage depends on how many titles the cavalry has moved prior to attack.
Organized firing (archers) - (passive) increased damage (you should also be able to arm your archers with some small weapons like daggers - it should cost a action turn to switch weapons - being attacked without small weapons drawn should mean major morale decrease and a very low attack rating - this would mean that you sometimes must make decisions like: do I want that extra shot but risk a cavalry charge annihilating my archers?) - Archers engaged in combat should
Tight ranks - increased defence and attack, but more vulnerable to ranged attacks (and perhaps magic)
Loose ranks - opposite
Sprint (?ability?) - 1 Extra combat move (1 pr combat), must target an enemy unit, decreased attack rating and defence for a full turn (basicly a: I want to get rid of that unit and I am willling to (possibly) sacrifice this unit in order to try my luck. (Could even by a faction trait - I noticed that the faction traits seems unbalanced by the way)
Leadership ability for some hereos - increases all units stats or morale, especially for "squads" (non-stackable, meaning that it would not be desirable to have to hereos with leadership ability in the same army). Perhaps even different types of leadership abilites like cavalry leader, infantry leader etc.
Also I think some units should have a zone of control ability - and some units could perhaps have a "counter" zone of control (like light cavalry etc). Possibly zones of control could be determined depending on remaining action points (this would mean that you might consider skipping a attack with a tactically well placed unit - fx to stop the enemy for moving against your archers - a unit breaching a zone of control is liable to an free attack by the controlling unit (again a choice: Am I willing to suffer a free attack to break through the zone?) as suggested in other threads. Zone of control on the world map would be welcome too - lots of tactical considerations in guarding a pass - and this would also potentiate the lower land / raise land spells!.
As I suggested in another thread: More unit abilites - and most of them should not cost mana but AP instead (like crushing blow). More non-combat abilities (master smith - improves quality of close combat soldiers trained in stationed city. Horse whisperer (increases combat speed of mounted units trained in stationed city. Healer - army regenerate hp on the move)
A pool of abilities for at least sovereign to choose from when leveling (more specialization of sovereign).
In general I would like to see that the most effective armies are based on a backbone of regular soldiers and hereos/monsters (the big ones like trolls, demons, dragons etc. - small monsters like spiders/sions/fallen could subsitute regulars as the backbone) could make the difference if applied in a strategical sound way. An army composed of only hereos or big monsters should of course be bad-ass but not as effective as a army of a good composition.
A weaker version of heal should be available to casters earlier in game