Saxon Campaign (Lots of n00b questions :D..)

[Omanes Alexandrapolites]

Also on VH difficulty, on the campaign map, the AI is much more aggressive and/or reckless in both diplomacy and in the way it acts on the map. On VH some have seen suicidal generals attack full stacks alone and refuse the acceptance of a whole empire off the player. Due to these issues, I always play on Medium or Hard.

On the battlemap, with VH active, the AI gets huge bonuses to morale and attack. I consider these bonuses unrealistic and too overpowered, so I stick to Medium which is a perfect playing field for both the AI and the player.

[Aradan]

On the battle-map AI gets just a +7 to attack on Very Hard, nothing more...

[Shieldmaiden]

On the battle-map AI gets just a +7 to attack on Very Hard, nothing more...

... except +7 Morale too.

[Aradan]

Nope, it's just the attack bonus. And because of the +7 attack, the AI gets stronger, doesn't lose so easily and therefore doesn't lose morale so fast.

Run this simple test: Start a battle on Medium Difficulty. Take a unit with high stats and frighten_foot as yours and choose a worthless enemy with few men and very low morale as enemies. Walk your unit towards the enemy. As they approach, mouse-over them and observe how much time it takes (counting from the moment you are able to see their morale rating) to drop from eager to steady. Do not fight at all. (If the enemy try to flank you, give them slightly better morale, until you manage to have them attack you without running away or sideways.)
Now do the same on Very Hard Difficulty. You will find that the time is exactly equal, aka there is no morale bonus. This also applies to Steady==>Shaken etc, although it's harder to make a unit drop so low before combat starts.