I've also found out that undead troops seem to be inferior to living ones, however you have to take into account that you can pick the skill "Dark Commander" (that was it's name right?) for extra bonuses for undeads, you can get the corpse bride and I think there are even some items that offer some exclusive bonuses to undeads.
All in all, I might go for the undead if I found some nice undead artifacts (can't remember/don't know if there are any good ones tho) and was a warrior. Dark Commander might be too expensive for other classes seeing as I always try to max out onslaught and tactics early on.
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