Hello SuicideSquad,
Changing the size of units is done in options/performance something. Turn the unit size slider to the far right. Recruiting units takes two turns instead of one.
I'm not sure about cost, sorry forgot.
Boy, I forget some details.
STW classic has daimyo honor only iirc, STW WE/MI has daimyo honor and generalstars. Each two generalstars for a daimyo or taisho boosts the level of all units in his army by one. That means that all units get 1 more attack, 1 more defense and 2 more morale. That includes the generalunit. When the general has two stars and his unit has level two, then you'll get a level three unit. Reduction of it means the opposite: the army will fight less good.
Daimyo/taisho honor is used in the campaign I think: how easy is it for a ninja/geisha to eliminate him, maybe used to calculate bribery, alliances etc.
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