Those are some good ways for Demons and Undead to regenerate. But I would guess that having to rely on the Hypnosis spell in other race situations wouldn't be very profitable for its high mana cost, making a long series of resurrecting either take a really long time or not possible.
Looking at the base defense numbers of units does make loading up on defense boosting items pretty pointless, especially if an enemy hero is involved. And it does make the most sense to be inflicting, rather than worrying about taking damage. I imagine with an all-melee army that one could somewhat minimize the hits taken even as counter-attacks if one sent out a phantom to take the first hit, and then mob the unit with every available unit. It would still be tough to do without Dryads putting half an army to sleep and dealing with 8 stacks of units. I suppose defense buff spells are probably more useful than hero defense could ever hope to compensate for.
It's the sort of dilemma that makes me think certain wives just aren't viable at all. Even on an all Dwarf run with the Mithril shield equipped to lower leadership requirements, I see Xeona being more useful for the two weapon slots than Gerda with a morale boost. Maybe I'm underselling the morale, but only one point boost doesn't seem to make up for her terrible equips (she's obviously built for a tanking approach). It's too bad the wives weren't more universal in their equips so that their morale or other boosts were more viable.
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