It conserves stamina only if they sit there. If you order them to attack, I believe it goes away since everyone start pushing forwards.
Fighting isn't about winning, it's about depriving your enemy of all options except to lose.
"Hi, Billy Mays Here!" 1958-2009
Yes guard mode is very useful and very interesting. A lot of my battle tactics with the Romans are based around the different features of guard mode on/off combined to attack orders but that might be a bit exploitative of the AI's endurance. However the AI's endurance will be drained to zero in most battles that do not end quickly anyway, so the point is perhaps moot. Another really potent unit for using with guard mode is the Mihlnat swordsmen. The behave very much like Unarmoured Polybian Principes when set to guard mode on and can absorb extreme punishment from infantry and cavalry alike while killing huge quantities of the enemy force.
When playing as the Romani I tend to set all my units to Guard Mode On to begin with. In pitched field battles I will tend to issue no attack orders, set fire at will, and allow the enemy units to charge. Any units with Guard Mode On and set to no attack order will only fight against individual units that engage the front line. The individual front line units will fight back and yield space to the opponents push mass while maintaining their formation. This will see units slowly inching backwards and only fighting those individual troops that reach the front line. By not pushing forward they will conserve endurance while yielding positioning and space to the opponent and maintaining their formation.
When the opponent starts to tire I will issue an attack order with Guard Mode On. This will expend endurance while pushing against the enemy unit and my unit will attempt to advance in attack of the opponent while maintaining their formation. This will try and engage the entire front line in combat while maintaining formation and gaining ground on the opponent. As my units approach Winded I will issue an attack order with Guard Mode Off. This is the killing phase of the battle where both units will take increased casualties. As my Hastati endurance starts to approach Tired I will get my Principes to Charge in with Guard Mode Off. If they cannot push through the Hastati I shall set the Hastati to Loose formation, drag out a much deeper formation, set Guard Mode On and re-issue the attack order immediately after releasing the new formation order. Once sufficient numbers of the Principes have reached the front line I will set my Hastati to Tight Formation if necessary, Guard Mode On and once they have organised their formation I will tell them to Halt their attack and concede ground when attacked. With sufficient Charging of Principes, eventually they will push the enemy back or my Hastati will retreat sufficiently and I can withdraw my Hastati in good order and prepare to replace my Principes with Triarii or the next line of my battle order.
This management of formation and guard mode and attack/charge orders may seem excessive but I find it to be much more useful and less dangerous than attempting to withdraw a completely engaged unit. The big problem is getting the second unit through the first, and this requires some quick mouse action with Loose formation, the D key, and an instant attack order in the new, deeper more spacious formation.
In short, use Guard Mode On, Loose Formation, Draw out a Deep Formation with the same Width as your Shallow Tight Formation and issue an Attack Order as quickly as possibly and you can get those Principes to the Front Line then issue Tight Formation and Halt your Hastati and pull them from battle with minimum casualties and maximum endurance.
I don't know how effective all that is mind you, but it is good for the old Roleplay.