Indeed the battle AI is better in MTWv2.01 but not by much; afaik the AI can flank/counterflank better and can also take advantage of the engine feature of disengaging. In the STW engine once units engage cannot disengage (very seldom). In MTW it can be done very easily, and in some ways this helps the AI as he is good in matching his units.
This is as you say countered to a certain extent by the MTW rosters that are very unbalanced, VI campaign included.
Some of the faults i describe are sadly present in most TW games that followed.
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