Well, force diplomacy is related to the strategy map AI. I agree, in MTW2 it can be modded with pretty good results (look at Stainless Steel, 6.2 patch candidate, for example).
My big concern is the battle-field AI.
I apologize for being blunt, but the battle-field AI in MTW2 is just plain idiotic. Of course, in the previous games it was no Einsten either, but the AI's tactical stupidity has reached way higher levels in MTW2 than ever in STW, MTW1 and even RTW (which was a step back from the previous games)...
At least, in the older versions, a defending AI knew how to hold a defensive position (hilltop, trees, etc.) and it took some doing on the players part to dislodge a well seated AI. MTW2 is a big step back in that department and my understanding is that most of the battlefield AI is unfortunately hard coded.
Let me give you an example from a VH battle difficulty Stainless Steel (the AI supposedly modded for better) game. I am attacking half a stack of AI's troops with a stack slightly outnumbering it in a VERY HILLY map area. I open the map to discover that I am sitting atop a hill, whereas the AI is sitting on a VERY HIGH hill opposite from where I am. To reach the AI, I would have to climb down the hill and then exhaust myself (exhaustion does work on VH battlefield difficulty) climbing the opposite hill again. Well, what does the AI do? It charges straight down it's perfectly defensible hill and then RUNS up the hill where I am... Needless to say: no troops of his ever reached my line whereas the opposite would have held if the AI stayed where it was. Similar scenarios play out with very high frequency in the cases when the AI is "defending".
By the way, so far, none of the mods seem to be able to improve the battlefield AI to any significant degree.
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