Accurate representation of current MB2 warfare:
I would rather see snowballing (i.e. the ability to actually win a war by winning battles) than killing the same T1-2 armies led by the same lords again, and again, and again, and again. But I still think that, combined with a lower recruit spawn rate, snowballing would not be that bad, since attackers will lose lords and troops as well, especially in siege simulations. Wars would just have an actual end.
A second advantage would be that freeing a lord or companion by taking the fief they're in (or via peace treaty) would be an objective to work towards. As long as captured lords and companions are freed within 0-3 days no matter what, and just instantly refill their ranks, both battles and capture feel meaningless. For me it breaks both immersion and gameplay.
Would you not want large 1000 vs 1000 battles to have an actual impact on how a war goes? Does it currently feel like they do?
Imagine considerations like "OK, we destroyed 2/3 of their forces, we can risk sieging that city now" or "We already lost our king and two of my companions, we really need to sue for peace" or "that last war was devastating, we will need a few seasons to rebuild our forces".
But that does not happen, because no matter what, everyone just instantly respawns. Without looking at cities and stats, can you currently even tell which side is losing a war? As in: actually losing the ability to continue fighting? Both money and men seem effectively unlimited for the AI. And to some degree for the player: There are almost always
way more recuits available than you need, when (normal) troops should IMO be at least a bit precious.