Actually i think balance has been a false obsession.
There is a very simple way to ensure balance along with variety with different sized armies, differently matched armies and different types of terrain.
The way to do this is to have one player set up the battle choosing the two sides factions and gold values and who is attacker and who defender (which ought not necessarily be the same) and the battle map, be it siege, mountains or whatever.
Then this is hosted as a battle offer, and the person who accepts the game gets to choose which of the two sides he/she will play.
This will allow totally varied battle types, yet nonetheless, balanced overall since the chooser will typically go for the side they think can win and so the battle creator will avoid having one side obviously stronger since he/she will inevitably be left with the weaker side.
in addition this possibliity will allow finely setup battles as part of an offline campaign without much work by CA
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