Actually, I found the most realistic solution was found in a Rome: Total War mod. If I remember correctly, I think it was Called Rome: Total Realism.
What they had was a very unique "Zone of Recruitment" function. In essence, almost all of the units were only recruitable in certain provinces, even for the home faction.
For instance, as the Moors, Desert Archers are a normal recruitable unit at the second level archery range. But, if I conquer the British isles, should I REALLY be able to churn out Desert Archers out of London? R:TR would make a unit like Desert Archers only recruitable in desert/surrounding regions. Likewise, if you are the English and you successfully take, say, Tripoli, you should be able to recruit desert archers there and not be able to churn out Welsh longbowmen.
It was very unique, and I liked the idea.
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