Eh, agree to disagree I suppose, but when I saw this complaint first (unlike Glowing_Ember, I have kept count - 3 times so far), after playing the game, it was the farthest thing from my mind that this could be working as intended. It just doesn't make any sense to me.
Would it be overpowered for a unit to be able to attack and keep its defense bonus? I don't think so. You say that otherwise the Defender would just be pinging away for 5 damage, so since he might as well do nothing anyway, it doesn't waste his attack. But that's because he's built to give up offensive power in exchange for defending others. You could have built a strong offensive hero, but instead you built a defensive hero - instead of attacking with him, you give up his attack in order to defend another unit. That defense boost should last until he gets a chance to act again. You might say, "well, he can defend more than one unit", but usually only one of those units gets attacked anyway, and the slight chance to be more useful than just defending the one who gets attacked is offset by defensive play being generally inferior to offensive. If you had built an offensive champion, he'd just destroy an enemy unit that thus wouldn't get to attack. When you build a defensive one, you hope to reduce the damage done by the enemy's attacks - as long as they don't have elemental damage. If half of the time your defensive champion is unable to do either one, that seems like a problem.
"You can't defend a unit that moves too fast?" I still don't get this one. You'd think that a defender would be more interested in defending weaker units, who tend to have a higher initiative, rather than slow units, who are usually slow because they're wearing a lot of armor. Even if the buff only lasted until the unit attacked or moved away, it would be more useful, because you could defend a unit that was drinking a potion or also trying to defend themselves. "Don't worry, I'll protect you..." *thwack* "Hey what happened?" "Sorry, you moved your shield slightly. I didn't know how to continue to protect you." Even if you are using it to defend a slow unit, you have to play the weird game of matching initiative levels and hoping for the monsters to fall in between your units - the initiative mechanic is just an abstraction of weapon speed, it just feels wrong for there to be too much emphasis on the additional subgame of playing the order (going first, going more often, trying to wear lighter equipment to get better initiative - all makes sense; trying to move slower to keep buffs from wearing off - breaks immersion for me).
I suppose I could mod it to work for 2 of the defendee's turns, but that's not really how it should work either. It should work until the defender stops defending or until the unit moves away, and I don't think you can mod that (although maybe adding a defense bonus to the square for a turn would work, like someone mentioned above). Also, I'm not sure if allowing it to work for two turns would allow it to be stacked (you can't re-apply the effect to just one unit, but if there is one unit in the AoE that has the buff and one unit that doesn't have the buff, you can apply it - don't know what happens to the one that was already buffed, though I'm assuming it doesn't stack)...