The biggest issue is the troop quality. Elvarie nobles usually have, in an army of 150 men, 13-17 rangers, 4-5 wardens, 9-12 redwood rangers and knights, 20 duskall and the rest are lower tier.
The only units actually "strong" in Tolrania are the kingsmen and the knights (not counting the hackers since they die to arrows ultra quick and I'm assuming a vs Elvarie scenario). The 150 men army has 3-5 knights and 8-9 kingsmen, sometimes not even that. I don't know if it's because the level of the units are messed up or if it happens due to bad scripting, but it's either a matter of lowering the number of "strong" units in the elvarie side or buffing tolrania to 10-15 knigths and 16-19 kingsmen, so that the auto calc doesn't favour Elvarie so heavily and in the open field some tolranian units actually get to melee.
Another possible asset would be making Headhunters (formerly Tolranian mounted archers) somewhat useful, as they're currently borderline useless.
And it's not like Elvarie lords normally carry less units, they're usually even on amount, which is instant loss for Tolrania.
I'd say the course taken in 0.7 was correct regarding balance, but it needs more in depth work. I offer myself to give a hand out in this, although I only know C++ slightly regarding codding.