I think the castle/city thing should stay. I actually tend to be of the opinion that the AI has too few cities to sustain a good economy. If they learn to specialize, that'd be great.
Same as Barry, I rarely lose to the AI and often give it a whipping. Even when I lose, it's a pyrrhic victory for them. In a memorable battle, a lone general + 2 units of Turkomens and 1 unit of Siphais gets attacked by a full stack of Byz troops (including some 4 units of Byz cav, 2 units of Vardarotai, 2 units of Skythion, 3 units of treb archers, and assorted infantry). Even though I knew I was going to lose, I managed to wipe out their entire cav wing and mauled 2 units of treb archers. This kind of thing simply should not happen. Instead of charging, they sat around while I had the high ground and shot them up, then killing several units while charging down.
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