Less developed states probably just chucked a horde of people at the enemy but some medieval armies were organised exactly like the ones in MTW 2. I know it because I've read treatises by, for example, Moorish tacticians saying "these guys carrying this, this and this go here, to repel cavalry", "brave foot soldiers go here, to inspire the other troops", and so on. As far as I'm concerned it's convenient and has enough historical validity, although sometimes I wish we could mix troop types to form, for example, a tercio.
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