I think this one applies only to battles and strategic AI approach to them. On highest difficulty I can see AI using different formations and using terrain more effectively than on the lowest.
That is a good point i had not considered that i will level a char now to have a look at the large battles,
Regardless though unless a unit happens to have lord like skills it is not going to do anything in combat considering currently the higher end troops barely are over 100 points at this point (with a lot having the wrong stats for there gear please fix!) battles are going to just be down to who as the faster swing.This combined with the current state of lord ai armies in wars nearly only having low tier units its akin to a spam fest rather than a real battle.
On another note though having a separate difficulty option to increase agent skills in combat (vet +50 challenge +100 elite +200???) would be quite fun!
Looking forward to the fix TW loving the patches so far (even if everyone is the hulk at the moment ? )