I really like how units with multiple people do less damage after they get wounded. It makes the combat much more interesting. Often, you have to decide whether to kill off a damaged unit, or hurt a stronger one. I usually go for hitting the stronger unit. That way they are less likely to one-shot kill somebody on my side.
With this great mechanic, the tactics aren't necessarily about focus-firing to eliminate one unit at a time. The side effect of this is that units last longer in combat. Which in turn makes each combat more interesting and dynamic.
Another advantage of this is that since it's not the optimal strategy to eliminate one unit at a time, the AI is not obligated to follow that strategy. Which means there should be less fatalities on the winning side, but you still get pretty beat up and need to go rest.
My only suggestion would be to apply this to heroes as well. After they get hit, they should get a wounded status. After that, maybe they get reductions in damage, initiative and/or mana cost. Perhaps the reductions could be based on how wounded they are. Maybe at 25% they get a seriously wounded status, for example.
Also, this goes well with the abilities that provide extra powers when a unit is wounded. That will give a twist, since for those units once you start hitting them, you need to finish the job.
Anyway, I think battles would be more fun if you had to consider wounding everyone prior to killing people off.
Is anyone else enjoying this aspect?