It depends on the unit, I´d say. For instance, phalanxes more than four or six (depending on the weapon length) waste potential. Cavalry should be deployed two to maximum three lines deep, to get more men smashing into the target and, with a bit of luck, some of then wrapping around the flanks.
Swords should be in two to three lines, too, for much the same reasons. Archers should be in deep blocks, since unlike MTW they don´t get accuracy penalties any more and the deeper the archers are deployed the more archer units you can place behind a given melee frontline.
Yes, thinner formations are more vulnerable to charges, but - and that´s the important part in my opinion - you usually don´t fight a one-on-one battle but you combine troops. So you´ll want to keep your swords out of the horses´ way, let those lazy guys who need to be carried into battle run into a thicket of sharp points.
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