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That problem is created because each stack has a maximum of 20 units. If you get unlimited stack size, the conceivably you would get the American Civil War/Napoleonic War progression, from many but small armies to one or two giant sledgehammers by the end of it, just as it should be.
you cant get unlimited army size but what you can do is make a full stack barely affordable. but then again AI cant handle consulidating and managing troops/economy on this level. it will also instead of merging them into one big stack attack with multiple smaller ones just to be crashed one by one instead. i think it handled better in MTW2.
forgot to mention, i did manage to win Carthaginian campaign and come very close to winning Bactrian in 0.8.:juggle2:
currently running 5 campaigns xD