First of all I'm glad WoM is still being worked on. The AI improvements and fixes also look sweet, and I imagine they will be applicable to FE as well. 
If you really want WoM to improve though there are some other glaring issues that need fixed. The games balance has been shoved to the side in favor of adding features and fixing bugs for way too long, and it's a real drag on the fun factor.
Frogboy, I suggest you fix unit HP (they need something of the order of a 10fold increase) - and maybe look into making the tech level progression in Armor and Weapons less... sharp.
This might require a change in the way heroes HP/attack works.
Unit balance has been an issue for a while now, and the unit HP change in 1.3 wasn't very well received, because it made no sense and killed any potential fun in combat.
Everything he just said is very true. The in game balance right now is very bad. A significant hp bonus to troops, a weapon dmg nerf, and a weapon dmg scale nerf are all good ideas. Unfortunately to fix the balance you would probably need something like a comprehensive spreadsheet of all equipment and monsters, which would be a whole whack of work.
Another balance issue is the limit of 1 per city level on unlimited improvements. This limit kills city specialization and only encourages city spam. Maybe something like a limit of 4 of any type of unlimited improvement per city level instead. This would be much better in my opinion. Or just ditch the limit entirely.
The decrease in improvement build time is interesting. Not sure why you would put in so many artificial limits on them only to decrease a natural limit like build time. Now instead of having cities spending all their time slowly building improvements most the time the will be doing nothing until they reach the next level and then bam a lot of buildings will just pop up. Also won't that seriously Nerf other buildings like construction yards, and the spell magical hammers? Maybe you could tell us how you see the current building system and what you hope to achieve with it?
Going to just send this group to conquer the AI and see if I can do it. If I can, then I have my work cut out for me this weekend.
I have always felt that the AI in elemental is actually pretty good when it comes to building armies, expanding(when not frozen), and leveling cities. It just has bad pathfinding, tactics, equipment use, and makes some dumb moves from time to time. I suspect from what you have said that that pathfinding will be greatly improved in 1.4 and the AI will be making significantly less dumb decisions.
Thus it's weak spots will be poor unit design(which is tied up with poor equipment balance), poor champion equipment, and a bad tactical AI. I am aware the tactical Ai is really a different issue but when it comes to beating the AI a tactical AI so bad that your units are at least twice as effective as the AI's is a huge issue. Combine that with bad equipment use(they don't maximize armor, which is 90% of combat) and I routinely kill AI armies that outnumber me 4 to 1. Routinely as in one after the other for entire games.