Frogboy, I found a bug (or something) in the tac battle AI.
I was defending my city with my Sov, his wife, summoned minion, and a peasant with a staff against an overwelming force of spiders. (This was early in the game)
On turn 1 of the battle, after I held my ground and let the spiders advance to my line, I noticed ALL of the spiders make a beeline to the right of my line where my wife was. She is unarmed and helpless so I ran her into the city behind the walls and place my sovereign at the entrance where they can not reach her.
Well, that made all of the enemy units to just stop dead in their tracks on the following rounds. I used my wife's dominate ability (which recharges every 3 rounds or so) on each spider so they could not retaliate. Finished the battle, that I should have lost, with no damage done to me.
The enemy just stopped everything because they could not get to their target.
Maybe you could take a look at this. I figured the city walls were there so you could retreat helpless/badly damaged units..
As far as the rest of the AI, great job! MUCH improvement. Now just to wait for the "slow down into a freeze" problem to be fixed so I can finish a game
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Edit: My apologies if this has been reported before.