The problem with allowing upgrades is that ranged units and sword units pay less for their upgrades. That means those are the unit types that will get upgraded which reduces the effectiveness of cavalry on those unit types. The RPS system is undermined by the upgrades. For example, a cmaa with 1w1a equals a chiv knight in combat power, is a lot less expensive than the chiv knight and only slightly more expensive than an orderfoot spear.
The cost system in MTW is messed up. Spears should be the least expensive unit, swords the middle priced unit and cavalry the most expensive unit. It's not like that in MTW because swords are the least expensive unit. For example, cmaa (250), orderfoot (400) and chiv knight (675).
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