I'm not sure I follow what you are saying. You say it is "directly proportional." To me that means that the more troops there are, the happier the populace. Now if you mean that it is "inversely proportional" I have a hard time seeing the link. I don't have peasant soldiers, nor do I have Town Watch. I get the best troops I can and put them in each city. I guess that's a drain on my finances. I'm always willing to change tactics or strategy.