Honor increases are much more valuable than armor. Here is why:
An honor increase does 3 important things:
For every level of honor increase:
1. Morale increases by 2
2. Attack (weapon) increases by 1
3. Defense (armor) increases by 1
The other province, you first have to build an armoury then the only bonus you get is a +1 to your defense, +2 with the next building, and +3 with the last armoury upgrade.
The +1 honor province give you a greater, cheaper, and immediate benefit, whereas the province with the iron, must have an armoury built on it, is costly and time consuming.
Hope this helps. :)
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