I fight all my battles at VH. My enemies always route, regardless of my armies are led by high dread/high chivalry generals. Yesterday I had a small but heroic battle outside Cairo fighting an Egyptian stack. I had weaker units (spear militia against Saracen militia) but I could flank the Egyptians with Sudanese tribesmen. The first Saracen unit that was flanked routed so I attacked the next with the Sudanese until that unit broke. Finally I destroyed the Egyptian army by causing them to route.

The only annoying thing about routing units in 1.02 is that it is used by the AI as a kind of relocating feature. Enemy units sometimes route behind my line and start attacking from the rear. After chasing them away they start over again. The computer doesn't know when it is defeated.