Well, yes it would be effective, so it would be a great AI formation. Perhaps that could be made the 'attack' formation while the normal line formation could be the 'defense' formation.
But in historical terms the cavalry was centered behind the infantry to an extent (they were really put on the flanks but in RTW we have to compromise). That way they become both a fast reaction force and a great offensive tool to use with the echelon. Of course if the AI throws that away too fast the whole formation becomes a liability.
So it is up to you. I think the AI will benefit more from your version.
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