Interesting test, RabidGibbon.It fits my impression from solo play - knights vs spears head on = mutual assured destruction. Yes, the knights may prevail but at such a cost you don't want to do it. (Think charge of the light brigade.)
As to whether they are overpowered, I think there are at least two alternative standards: gameplay or historical accuracy. Probably three, if separate SP and MP gameplay.
For SP gameplay, I don't have an enormous problem. Unlike RTW, I don't find the AI cavalry rolling over me, nor do I find myself trying to roll over the AI with my cavalry. I'd still rather use swords or missiles to kill those spears. And I'd still rather use spears than other units to soak up a cavalry charge (although apparently pikes are the best).
For historical accuracy, it's open to debate. CA might have got it right - knights could prevail over spearmen but it would not be a smart general who tried a simple frontal assault. I've read more about Napoleonic warfare, where cavalry seem to have balked at steady infantry, but it's likely in the pre-gunpowder age, with heavier armour, they were used more aggressively.
On balance, I rather like M2TW knights. They are very powerful, but very fragile, and so interesting to handle. They remind me a little of heavy cavalry in RTR Platinum Edition. By contrast, I found MTW knights lacked a little punch while RTW cavalry were a little too robust.
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