First, I don't think that you should have so many units present in order spread a ZOC. I would say:
- 0-299 units - no ZOC
- 300-499 units - 1 square ZOC
- 500+ units - 2 square ZOC
3 square ZOC would be too much in my opinion. It's like:
XXXXXXX
XXXXXXX
XXXXXXX
XXXOXXX
XXXXXXX
XXXXXXX
XXXXXXX
Horribly too big. I understand that bigger army would be able to cover bigger area, but if you spread your units so much, than how can you expect to intercept the enemy with all your forces? Seems illogical to me, and on the top of that: if you have smaller maximum ZOC size, than you have to tactically place a few sentries.
Second, I have another idea about ZOC. Let's divide the whole system into two parts: ambush and blockade.
Blockade is the typical stuff that we are discussing right now. You have an army, you put it into one place. If you spend 1 turn waiting in one place, you will spread your typical ZOC basing on the size of your army (described above). Although, if you spend 3 turns waiting (clarification: you have to choose blockade action; if you don't choose it, even if you wait 10 years, you won't set a blockade), you initiate a blockade. This way your ZOC increases by 1 point (+1). I know it's contradictory to what I wrote above, but at least it's semi-balanced, as you need to wait in one place for 3 turns. The drawbacks of such maneuver: you have to wait 3 turns in one place (first drawback), and after you want to move out, you have to wait 1 turn to repack your things and continue your pursuit.
Ambush is something more interesting. It works in similar way like the blockade with a few notable differences. First thing to note is that ambush can only be set in special zones. In normal games it will mean that you can prepare ambush in forest & mountains; while the modders might extend the functionality to other zones.
Second, your ZOC is always 1! This way it reflects the reality better. You can't make an ambush everywhere, where your units are. There is only a specific place in which you can ambush an enemy.
Third, in order to set up an ambush, you have to spend 2+1 days (I will explain the 2+1 notation in a moment). That means 3 days.
Fourth, (at last some bonuses) after the second day (and further) you become invisible! Yup. The enemy won't be able to see you (assuming he doesn't have any special units).
Fifth, you gain an advantage fighting a foe that went into your ambush. Let's say you will be able to make the first turn, while the opponent won't have such possibility, or your atk/def stats will increase by some %.
Sixth, ambush party can't sit in one place (ie. hide) for infinite amount of time. After a successfully prepared ambush (3 days), you can wait max. 7 days. If you cross the deadline, your units will become once more visible, and in order for them to become invisible once more, they have to move to some new position.
What ya think, guys?