I say, more logical distribution of forces.
If you're wandering around the friendly cities, there should be lots of farmers and friendly parties around. If you head up in the mountains or into deep forests, you'd only encounter hunting parties and bandits and stuff. If you went to the border of the two kingdoms, you'd see war parties from both sides, large battles and stuff. Khergits and such would only be found along the edges of both kingdoms. And if you went behind enemy lines, you'd have a
real challenge..
Yeah, I know the game pretty much already works like this, but I think it should be fleshed out even further. I suppose it very much have to do with the design of the world map, which kinda sucks. I expect a more interesting world will be designed and modelled eventually..