Actually this new Battle Terrain System can give a meaning to castles and make them more useful.
For example, if a Northern Empire party is got caught by a Khuzait party in a region which has a castle in it, the simulation can take that castle into account and look if that party can escape under that castle and have the help of the castle garrison. If the way of the NE party is blocked by the Khuzait one, the garrison will not be included in the calculation. But if they can escape to the castle, they will lose some men on the way but they garrison of the castle will help them and simulation calculation will change accordingly. Seeing that they will lose the battle, The Khuzait party can give up the offensive on the NE party and retreat.
This can solve snowballing issues, make castles more useful, compansate for the parties not being able to take a shelter in castles when they are being chased, make friendly territory safer and enemy territory more dangerous. Lots of benefits really.
But I think it requires finer regional grains because current regions seems very big and can take multiple settlements in it. This means lots of maps requirement and means much work for map makers.
The coolest part for players will be the battle scenes in which we can have the castle or town on our back and have the help of the garrison in the battle scene. It would be really cool to bait a big party in a fight and retreat under the walls of a castle and cause them a significant damage. We usually lose the battle and be a prisoner to a much stronger army if we get caught in the current state of the game. This feature can give us another chance when we are caught by a party. We can get rid of the enemy without being prisoner with the help of castle garrisons and cause them to leave the battle. Or the party that we are attacking can take that shelter and we wouldn't want to get close to it and we can retreat after chasing them for a while and killing some of them.
But for this to happen, towns and castles should be present in the battle scene but I couldn't see the town of Sanala in the video on the place it should be.
This is a revolutinary suggestion to an already revolutionary feature but the game will be far more greater that it already it is with the change, I strongly believe.
Edit: When I thought about it again, every castle and town needs their own unique scenes before this feature can be implemented so this feature must wait for a long time to be in game even if it got approved. But I wonder if something like this can be made in the future and want to hear devs opinions about this.