My understanding is that if a group of Units attacks (Party of 3) and each unit has 5 Attack it gets one attack at 15 Attack power.  I have abused this by having a champion with the 100% damage ability hit each of 3 groups of three one time each then their attack is below his defense, after this its an easy fight when before it was deadly.  So why not have Three attacks at five power instead of 15 then 10 then 5 with a loss of 5 attack power to a single attack for each unit lost within the group?

I will have to test this as I think I have an idea for a very large change to mechanics mod if this works this way now.  Basically I would mod it that You have To hit something (Dodge vs Accuracy) then determine how much damage you do ((Attack - Defense) * .1) * Each Weapons Damage Rating.  This way each weapon has a specific amount of damage it can do that is capped except for the addition from traits adding +1 damage here and there.  Basically gives a third level of mechanics to spread out bonuses for melee instead of more accuracy and attack for Offense.  Its just a way to regulate scaling.

Let me try this again, in very simple English:

You are describing the way things work right now.

But hey, don't take my and Sadurak's word! Feel free to test it.

Keep in mind I can't look at the XML's data at the moment, I uninstalled to try to fix the disappearing trees and now it won't install.

When looking at a weapons XML data table it only has an attack value which when compared to defense does a certain amount of damage based upon the difference.  So a difference of one scales dependent on the size of the overall attack value.  Since I can't look directly at any of this I may be talking completely wrong here.  The point of what I am suggesting is that a low damage weapon can only do so much damage.  I don't know I will dig around in the code some more, well once I can actuallylook at it and if I am wrong, well it won't the first time I have been wrong and have to eat my words  .

Sadly I read that after I already started down the path of pain and misery.  Trying to resolve the issue through a ticket still.

OK I finally have the game reinstalled through some luck and good suggestions here on this board.  Here is what I have found to be the case inside the XML data, I will post a staff.

<GameItemType InternalName="Staff">
<DisplayName>Staff</DisplayName>
<Description>A thick wooden staff, useful to wanderers of the wastes, and handy as a weapon in a pinch.</Description>
<Type>Weapon</Type>
<Type>Defense</Type>
<WeaponType>Spear</WeaponType>
<CanBeEquipped>1</CanBeEquipped>
<AdditionalTrainingTurns>0</AdditionalTrainingTurns>
<ShopValue>15</ShopValue>
<GameModifier>
<ModType>Unit</ModType>
<Attribute>AdjustUnitStat</Attribute>
<StrVal>UnitStat_Attack_Blunt</StrVal>
<Value>4</Value>
</GameModifier>
<GameModifier>
<ModType>Unit</ModType>
<Attribute>AdjustUnitStat</Attribute>
<StrVal>UnitStat_ChanceToCrit</StrVal>
<Value>-1</Value>
</GameModifier>
<GameModifier>
<ModType>Unit</ModType>
<Attribute>AdjustUnitStat</Attribute>
<StrVal>UnitStat_CurrentWeight</StrVal>
<Value>0</Value>
</GameModifier>
<IsAvailableForSovereignCustomization>0</IsAvailableForSovereignCustomization>
<RarityDisplay>Common</RarityDisplay>
<AIData AIPersonality="AI_General">
<AIPrefType>AIPrefType_BLUNT</AIPrefType>
<AIPriority>79</AIPriority>
</AIData>
<ArtDef>Staff_ArtDef</ArtDef>
<GameItemTypeArtDef InternalName="Staff_ArtDef">
<GameItemTypeModelPack InternalName="Staff_Default">
<IconFile>W_Staff_Icon_01.png</IconFile>
<TintR>0</TintR>
<TintG>0</TintG>
<TintB>0</TintB>
<AttackSFX>Hit_WoodSpear1</AttackSFX>
<EquipSFX>Equip_WoodenItem_01</EquipSFX>
<EquipSFX>Equip_WoodenItem_02</EquipSFX>
<EquipSFX>Equip_WoodenItem_03</EquipSFX>
<OnHitParticleName>Staff_Attack</OnHitParticleName>
<GameItemTypeModel>
<ModelFile>gfx/hkb/weapons/w_basic_staff_mesh_01.hkb</ModelFile>
<Texture_All>W_Club_Texture_01.png</Texture_All>
<Attachment>hand_right_Lcf</Attachment>
<Color_Metal>112, 112, 112</Color_Metal>
</GameItemTypeModel>
</GameItemTypeModelPack>
</GameItemTypeArtDef>
</GameItemType>

On this item there is UnitStat_Attack_Blunt which value is 4.  This value adds onto a units Base Attack value and is used for damage calculations.  What I am suggesting is remove Attack and Defense for directy calculating damage and have it for how much damage gets through using a 10%-100% damage scale.  I am not sure this is even possible with the code but I am willing to plug away at this.  I know I can do this for any special attacks but not sure about the base attacks.  Monsters will fall under the same problem as they fall under the base attack which is buried within the main computer program and not within the code I think.  Anyways that is what I was talking about.

Lower scaling values so that over balance can be achieved by small incremental changes versus rapidly scaling values of combined scalar values.  If this is impossible with code I my just change all % bonuses t a strait + bonus say a 25% bonus to +1 or +2.  This prevents uncontrollably high values throwing off all semblance of balance to units and Sovs in early and late game if someone stacks certain values (dodge).  

This also makes it easier to implement overall changes like step incremented armor; Padded(light Leather => Leather => Studded Leather. To represent improved armor crafting through Tech upgrades within the Warfare Tree.  To balance this the Magic Tree would focus on stuff to make Magic Units stronger.  Think basically Warfare Tree = Bigger Defense + Smaller Offense, Magic Units would be the Reverse, and Civ Units would finally be as close to a Even Mix of the two but have an advantage of Speed (Natural Movement).  This way you differentiate the different units based upon which one you want to focus on.  The farther you go down a tree the more the weaknesses are reduced but not eliminated otherwise it doesn't matter which tree you go down for units they all become the same   or worse useless (Civ units currently).

Some of this is not possible yet as Heavenfall has pointed out about armor tags but I am trying to figure out what is and is not possible so I know what I have to do in the long run.  I will never say I know it all, I am just trying to learn what works and what doesn't so I don't sound like a complete blathering idiot, well at least not sound like it most of the time  .

Thanks for the feedback.