I have to agree with the OP on this, although heroes should be strong they quickly become gods among mere sheep. I definitely get to the point very quickly where I just use my hero to solo dragons and empires... (on challenging, I do not believe in cheating AI's
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As a personal preference I would go with seanw3's answer to this problem. Making the levels matter more and making the experience required much higher. Meaning your simple units can catch up a little better.
Secondly, as an alternative, I think that having units gain levels and allowing you to choose how their stats are shaped. Or possibly pre-define various level curve styles might be interesting, although probably unnecessary for the majority of players.
If you have designed dozens of published games you should know that offering such broad and sweeping suggestions that require changes of game fundamentals and a serious new round of error-checking, bug-fixing and balancing at this late stage is both useless and quite frustrating...
In response to ins2... Since I am not a game designer I am going to look at this disagreement from a different angle.
FE is considerably more open to the modding community, or at least that is the direction the game aims to go from what I can tell. Also, being a single-player only game, it allows for drastic modifications by the user-community with relative ease.
This being said, I believe mdonis and a lot of the user community that does dislike a number of the current features will have the opportunity and the community around them to make changes that will not be made by the game development team. If you look in the OP post, he does not say that game developers should fix this problem. He implies it, but he is not asking the game devs to alter their timelines and change some core functionality. He is making a suggestion towards a problem which he perceives.
What I believe many users on this forum would be happy with is a well done game. Maybe it has some glaring flaws in their minds, but it is rounded, thought out and has a solid overarching design behind it. Which currently FE is shaping up to be. But, they would request that in addition to this there be ample ways to modify this game. Which currently the game devs have spent a lot of time making sure modifications fit easily into the game and are not immensely complex to add. It is my hope, that we will see a development kit of types, allowing the community to polish off the game in various directions that we desire.