Need an explanation!!!

[Rhyfelwyr]

Now you mention the combat bonus, that does seem to ring a bell. I remember attacking Jedda, or maybe Arguin or somewhere like that. Anyway it was a village and had a few Camels along with Nubian and Sudanese infantry units. I remember my Desert Cavalry and even my General's Bodyguard doing unbelievably bad against the camels, at one point I thought it was going to end in a humiliating defeat. My cavalry didn't rout though, so it does seem like camels get a better attack than morale bonus.

Now I know this they could be very useful against the horde factions...

EDIT: Still not sure it justifies an upkeep of 300 for Tuareg Camel Spearmen though.

[Doug-Thompson]

Cyrus the Great of Persia won battles against enemy with good cavalry by using camels. They smell bad, they're ugly, bad-tempered, bigger than horses and mean. And yes, they do scare horses, especially those unfamiliar with them.

They're kind of like elephants. They're not so effective once you're used to them and know how to counter them.

Missile cavalry can keep far enough away to avoid the fear penalty. Camels die quickly to missiles.