Some personal quibbles:
Looter and bandit groups will merge over time capped by the scale of the players strength, avoid uncatchable clutter on the map.
I don't like games that artificially scale in response to player progression. I prefer a more "Kenshi" (and M&B) experience, where you start off small and grow into a power. As such, the game should begin with a wider mix of bandit groups that vary in strength. There should already be larger bands that you have to avoid at the start of the game (which take the place of some of the small groups, so there aren't quite so many of those). You should later on be able to hire patrols once you have a castle/town to clear out the riff raff for you.This creates more of a sense of true progression, as not only are you now powerful enough to take on the groups that once bullied you, but you can also start delegating the busy work of clearing looters to others.
Factions that grow too large are prone to rebellion and break up to prevent steamrolling. The rebellious faction will stem from a city and will take on the Major Faction that city originally belonged to.
The devs did mention that they intend to implement more kingdom instability. However, this shouldn't be the primary method of slowing steamrolling, but more of an interesting dynamic. Otherwise, it will get exceptionally tedious for the player once they start backing a faction (or forming their own) and it just busts out in constant artificially forced rebellions non-stop (lords should have better reasons to rebel rather than, 'uh oh, we're getting a little
too successful!'). Rather, other factions should recognize the growing threat and settle their own differences to band together to face them. And once the threat has been diminished, they should go back to bickering amongst themselves. This creates better overall balance, because it allows for the player to be more of the "deciding factor" by either helping their faction overcome the stacked odds through sheer Napoleonic military genius or by Machiavellian diplomatic scheming.
Accessing traders is only possible from the actual city scene and from the correct traders untill you hire a local runner for 5000g, which then unlocks the current 'trader' option in the city menu.
Please, no. I get what you're saying in the comments defending this... there is currently no real reason to go into towns. So all that time invested in making them so immersive and detailed is wasted. And I agree. It's wasted. There's zero need for the town scenes, and they're a waste of resources that could be better spent adding in new arms and armor, more quests, more dialogue, etc. Forcing the player into hunting out the guild master and village headsman in Warband didn't make me appreciate those town scenes more. It made me ****ing annoyed, especially when I'd spawn without a horse and spend ten minutes wandering the city trying to find whoever it is I needed to speak to. In fact, it was one of the most unpleasant aspects of that game. Let's not recreate that here. By the time you've started your tenth playthrough, there isn't a soul on earth that's going to want to do that again, trust me.
Removed hideouts entirely
I like your suggestion, however, I do think the "stealth" assault option should exist in some form. It could be a quest where you need to save someone being held, which actually better justifies not going in with your full force, but rather trying to catch them unawares. Or alternatively just have it as an option when approaching the camp... you can either do an ambush or an assault, but if you choose an assault, you'll roll on a worse loot table since the leaders were able to see your army approach and escaped with some of the more valuable loot. It's not necessarily a terrible design, but right now the camps are just way too prevalent and not really balanced appropriately (and forcing you into dialogue/melee at the end every time is annoying).
My own mod-mod would also add:
-Option to alter the rate of aging
-Option to alter the XP/skill gain rate
-More dynamic reputation system (in native, people don't react much to what the player character has done for them; e.g. helping a lord in battle, turning over a traitor or enemy king, etc.)
-Toned down forest bandits
-Completely revamped romance system
Otherwise, good mod.