I've been researching into the matter of the 32 party slot limit as of the current M&B Version (1.011) thoroughly and I can not exclaim how much I agree with Oksbad. I was planning on starting a new topic for suggesting the removal of this horrible limit but seeing as I found this topic pretty fast with the search function, figures I'll just revive this thread.
Before you declare TL;DR on this reply heres a short summary: The 32 party slot limit sucks for a lot of people, maybe or maybe not for you but in either case it deserves to at least be modable. This is why I think it should be scrapped or made modable.
Shortest summary: I am right, reply to this thread / post in an agreeing fashion
First of all,
Reason : After much research and reasoning I have realised that the party slot limit most probably exists because of the reason F50 gave as a reply earlier in the topic. Any attempts that have been made in this or other topics to explain a practical reason for the party slot limit have either been made without much thought or seemed "bloody poor if you ask me". (

)
Secondly,
Problem : Q: What exactly is the problem with the party slot limit of 32? Who the hell would want to use more than 31 troops and or companions?
A: Me, Oksbad and every person I know who've played M&B. I can't answer for the masses, but I'm pretty sure this limit bothers and annoys a lot of people who play M&B. The problem with this limit is that it limits and ruins gameplay for anyone who doesn't feel that spamming around 5 different high tier units can or will fullfill their gaming needs for any longer amount of time. Me myself I play the Prophesy of Pendor mod, which basically revises all of the units and adds a lot of new ones with interesting troop trees. I like having a mixed army and no I do not in fact cherish the thought of having one of every different type of unit, however the thought of recruiting from the various minor factions that the PoP mod adds while maintaining a varied army of major factions units
does in fact sound like something I would enjoy.
While some may think that if I want to have more than 32 different high tier units I am insane, I want to point out the fact that the upgrade lines in PoP are long, and I'm usually sitting with the 3 highest tiers of one upgrade line in my party. By gradeschool mathematics this makes me able to effectively train 31 / 3 = roughly 10 high tier units, that is if I had NO companions whatsoever. Sadly I do have companions, and I have a few odd troops, and I continously run into the party slot limit every time I begin to raise my army. (Which I for the record do after every castle I take, castles need defenders y'know.

)
Thirdly and lastly,
My suggested solution : Scrap the limit, or at least for the love of god make it
modable, the fact that it wasn't from the beginning I find quite odd but seeing as it's hardcoded and decompiling a file is a crime worse than murder (

), nobody has dared to touch the limit. I think this would go well together with the upcoming Warbands expansion seeing as it seems as if the developers are planning on making multiplayer battles have a limit above 32.