I agree that the strategic AI is sometimes plain stupid, mostly due to poor economy/recruitment management. I think the AI does not understand what a "useless" unit is and where to find the "disband" button.
Im my late French campaign I keep giving conquered regions to Luisiana and giving them cash in addition to that. My "protectorate" owned Netherlands, Flanders, Genoa and Savoy in europe as well as 4 or 5 regions in NA. They get cash infusions and I have MY ARMIES keeping the stupid indians, austrians and other bad guys at bay; my protectorate cleans up the raiding parties.
They should have become a powerhouse in sth like 15 turns. However, they werefeeble and destitute; recently, I figured out why. I completed the mission (it was 1750 and I need to annex them to win) and saw they never bothered to upgrade their industry. Even the developed regions like Netherlands had apparently seen no iprovements.... OK, maybe they built armies? - NO!
They built navies, brigs and sixth rates, I found several stacks of those sitting in awkward spaces on the map (like a little west of Iceland?!)
Had the AI ignored the navies, it would have had a decent econ and at least 2 stacks of troops in NA (where we were constatnly at war with the indians). It could have also joined my conquests in Europe; it did have all the prerequisities to become a powerhouse and maybe even challenge me, but it did not.
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