They have changed the system in bannerlord where peasnats/levy are now separate from more noble troops. So this will solve the issue of peasants becoming knights. (Gekokujo had this system where samurai where separate from ashigaru).
The upgrade costs are there to cover the acquisition of equipment, I think it would be annoying to have to aquire horses and specific bows etc. to upgrade troops (Especially that in warband at least; the shops had little variety).
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has a mod that I can not remember now that when you finish a battle, it gives you the option to transfer the equipment to your teammates, automatically replacing it if you do something better than is already equipped. This thought would work if the looting were total, for example, an army of 50 men would give 50 pectorals, 50 helmet, 50 gloves, with damage or not.
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Do keep in mind that throughout the middle ages (and Bannerlord seems to be inspired by the migration period) it was not uncommon for soldiers to have to bring their own equipment (at their expense) to the battlefield, while they were paid the bare minimum to continue the campaign and would have needed loot to really earn money. Whatever system Bannerlord uses I hope it places more importance on the upgrades making economical sense.
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You're right, the thought I'd give would be like the Vikings, who, looting a region, steal horses and pet food so they can explore more for example.
independent of the daydreams and thoughts that I may have, I really want to play this masterpiece soon
