I have bought the game three days ago, and although it does have its flaws I still like it. In any case it is already better than the Heroes of M&M series. Only Dominions 3 is a bit better, although Elemental could catch up to it and exceed it with some effort.
Here is my suggestion:
I wish there was more loot if you battle other players or creatures that use items. So, for example, if in the early stage of a game I beat a brigand then I should get only a few gildars but maybe a rusted brigand sword and perhaps a sellable trophy item if I happen to catch a brigand captain. I would also prefer some more varieties within items and particularly weapons. For example, a sword that is used to fight against a stone golem could become chippy. There needs to be a way for little kingdoms which fell behind research and resource gathering against the other factions, to gain weapons, so they should be able to, say, send a party after brigands to get their weapons as loot.
Another thing which I would love to see implemented is the ability to tame monsters or animal creatures in the wild. Perhaps we could knock them unconscious with blunt weapons and then encage them? Or something magical? I think this could be a lot of fun to roam the countryside with an army of tamed monsters, like in the old Star Wars Galaxies MMO.
I wish you best of luck in updating and patching and expanding this game. It has so much potential. If you stick with it, the game could become a real classic within a year or so. God bless!