We can take it as a fact that the AI in M2TW is better than in RTW. It's been a while since I last played it, so I can't give you examples off the top of my head, but I've played it enough to be certain of it. Also, an important point is that there are more possibilities to deal with the shortcomings of AI. One example is the feature to limit recruitment of certain units, which will do a great deal to prevent pure elite armies, but perhaps the most important is that the AI itself is actually moddable. Never done it myself, so I have no idea to what extent, though.
Edit: I'm aware that the elite army is not the most pressing matter, but there some factions are quite prone to that (played some years in a Romani campaign over the weekend and fighting elite african pikemen and other assorted elite infantry becomes tedious; same goes for the notorious grey death's argyraspides stacks).
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