Level 1 vs level 4 makes spells and Time Back easier to use on the level 1 unit. There's items with bonus for level 1 units only and some for level 1-3 units only. Some warrior skills can increase attack (up to +7) and initiative (up to +2). The zombie wife is given +1 speed and +1 initiative to undead, all of that can easily counter balance an army with elf only.
Hunter aren't the only archer to use without dragon arrows, I just wanted point an example of that.
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