When we started making the game we had decided that all units would have their own HP that they would carry with them after the battle so all the code to have that is in the game.
We talked some with KGB and he explained exactly how the battles work in the Warlords series we decided to go with that and try to balance it.
I think for the most part it is okay now but now and then something insane happens. Extreme luck on one side and when that happens early or in a deciding battle it makes the game boring so that is one thing I want to fix.
I will test some for beta3. I think from beta3 to beta 4 wont take as long as beta2 to beta3 so its worth testing some ideas and see if it works.
Right now there are 3 hits per real hit in our work in progress beta 3. Basically 6 hits per unit but only 2 shown on the units so it wont take forever to watch a fight.