It does serve to make the early game harder for the KH player. I only got 1.0 today and haven't installed it yet, so I'm not sure how much the new 'difficulty' script impacts the difficulty of their game.

They were far too easy in .8x. It serves as an additional hindrance. This may no longer be needed if the Maks are really strong around the KH now. They were pushovers in Southern Greece in .8x, mostly because Antigonos went always north.

Oh, and Xanthippus of Qarthadastim gets the spartiatai too, as he was a spartan mercenary.