So, apparently, the militia design is set for auto-upgrading one-handed blunt weapons. This means that if you get lightning hammers in the early/mid game (which is completely feasible), your city guards will really do some damage-- given that the crystal for lightning hammers may be rare, they may be some of the best-equipped units on the battlefield during an attack on a city. It may be far easier for a player to equip *all* of his militia with lightning hammers than to actually equip roaming units with them.
I hate to use the word "unrealistic" as a critique of something in a fantasy strategy game, but this does give me pause, and threatens suspension of disbelief.