I remember the epic public 200 person Battles played in the early days of Warband with Cav charges into stupid shield walls, chaos, carnage, real fear, elation, crushing defeat. I remember a player who had been in the beta taking on a half dozen noobs at once and winning through skill cunning and guile. I remember the crazy item setups, the naked bezerkers, the messed up faces. I remember hiding in the wood shed with 15 other players and defending it to the last man in a sea of bodies. As I improved I remember my rivalries, the players who would challenge me and the players who would destroy me. So much tension in every fight! Large battles had so much character, and so much drama. If it weren't for those first experiences I don't think I would have spent the 1000's of hours I have on multiplayer.
How can removing battle possibly be good for this game when so many of the experiences that defined my Love for Warband occured in Battle? I mean skirmish sounds great and if it only needs 12 players there will always be full skirmish servers, so why not have both? It's a fallacy to say that it'll "split" the player base.