From the beginning the AI has had less trouble maneuvering the smaller units and making better use of them tactically.

That seems to be an issue again in 1.5 with units getting stuck in walls or all not fitting on top.

I am willing to give the AI every advantage until the battle starts. If it works better and is smarter with small units, then I will give it to him.

Also, third time is the charm...

Steam Dry-docks are not the last name in ships.

All the ships from a Naval Dry-dock now come with experience bonuses. I build them two or three to one over the Steam Dry-docks.