The battle AI strikes me as somewhat improved, but not fully fixed. I have run into the completely passive AI when I sally at times, but if they have catapults the AI is more than happy to bombard the snot out of me. About half of the battles now feature the AI troops sitting and being shot up by arrows, which is a big improvement over nearly 100% of the time before.

The campaign AI seems much less passive, and it's been attacking me like mad on a number of fronts on M/M.

I had problems with one battle: I crusaded to Jerusalem, but the HRE took it first. Since I was in the neighborhood, I seized Gaza and Alexandria. The Mongols them wiped out the HRE in one shot and came after me in Gaza. Every couple turns, a full stack would besiege me and it got pretty hairy (no passive AI on these battles, whatsoever). The third stack, however, was a particularly grandiose one, with the faction leader at the head of it. When I had wiped out many of the footsoldiers, the Mongol army turned tail and ran. After I took the option to continue the battle, I chased the routers for a while and got a CTD. Irritated, I tried again and got the same CTD. A third time, I took the option to end the battle and it worked satisfactorily, and no CTD in battle since.

Inquisitors seem less of a problem under the patch. I did kill two of them with the surround-and-drop cheat , because they had pretty nearly wiped out my family tree, but ever since I've had little problem with them (which is a good thing since I've stacked the College of Cardinals 11/13 from my faction, and every pope since the first one has been one of my English priests).