The reason I feel I need to point this out is because while they may both have a couple similar elements they are in fact completely different systems. Perhaps the main difference being that in an rpg it focuses on the few and you can get by with slightly less than the recommended group size as it is generally made up for the few getting more out of it. In strategy games it is about the many and the idea of splitting xp among so many really hurts the balance of the game as suddenly any unit that stands out can lord over the rest as they struggle to get xp themselves.
Maybe you can clarify this section for me.
Basically what this does is makes it so that units that are developed outside of your initial vanguard (as in built mid to late game) wont be able to compete with units already established because the weaker enemies that they would farm xp from would already be killed off and then they would also have to somehow be able to defeat the already established armies of your enemies. This is not acceptable. Your begining army should not be the only useful units you can get.
Incorrect. As you research technologies, you can build better mid - late game units and upgrade outdated units, and recruit higher level champions. I know that the system is a little out of whack as the game stands, but when the system is balanced a little better with itself the two ought to line up more organically.
This is the problem with such a broad reaching "fix" instead of the one I suggested which went straight for the heart of the matter.
I was trying not to comment on your proposed system fix because I hate caps with a passion, but since I haven't taken the opportunity thus far, let me proceed.
Caps of any sort dumb down the game immensely, because it means I have to play the same exact way every time. In your case, I level my heroes as quickly as possible to the 'soft-cap', rush the tech I need to open the leveling to the next 'soft-cap', rinse and repeat. Booooooooring.
Maybe I want a singular hero who becomes powerful fairly early. Maybe I don't want to deal with heroes at all, and want to focus on civ-building and armies. Your proposed system, and all capping systems, are invasive, ill-construed, heavy-handed, duct-tape-ish, jery-rigging, Neanderthalistic and insult my very meager intelligence.
FE is not going to be built to be a multi-player experience, and as such does not need to be 'balanced' among players per se, which is what caps heavy-handedly try to accomplish.