I have limited experience with LTC gold, but I'd say the main improvements to the AI are on the strategy map, in terms of tactics during actual combat it is still limited by it's failure to understand terrain and movement factors. The AI does a much better job guarding cities and bringing reasonable stacks to the fight, but it's just as easy to lead it around and surround it once the fight starts.
I don't have enough looks at the revised diplomacy to tell if it really matters at VH/VH, but I think we should play there. The road should be fairly difficult IMHO.
I will say that I'm very glad we don't have an HA heavy faction. It's just too easy. Also I recommend that people avoid charging directly into set formations of spearmen with their bodyguards. In LotR we had BGs that could butcher armies, which made it difficult to tell when your character was about to die. In LTC if you bog down after a frontal charge at spears above the militia level you will die. Pin them and hit them from behind, or run them until they'll break on impact, etc. Victories need to be won on morale more than brute force, more like what we did in KotR (when not facing 3x gold stacks).
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