I think battle AI will always be somewhat of an issue, but EU does show that campaign AI can be better at least. That game is also not turn based though, and you need turns if you want total war type battles, unless you have it real time but pause the campaign for the battles. I think the turn based system does hurt the AI though because it makes it very easy for the human to launch sneak attacks and surgical strikes that the AI could counter if it was in slow real time like EU, but cannot because of the turn based system. ETW and NTW did try to help with this issue a bit by making the zone of control around armies way bigger so they could reinforce from further away, and it does help in some cases, but it's not enough (particularly when the battle AI is so bad that you can easily defeat a force 3 times the size of yours).
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