I got tired of restarting, so i gave my new char some runes, money and leadership. So he has now all maxed skills and maxed spells. It seems to me that most of fighter/paladins skills have very limited usefulness, guess im too mage oriented
He also has 4K peasants with him, as these are the only unlimited troops. This enabled me to check a little further in the demo.
The lvl 15 fight gives you 75K gold and 3500 XP should you win it. Now trying the lvl 30 fight- which is WAY too hard to figh with lvl 1 troops- all mobs on map did at least 2500 damage in 1 hit. There were 30 Dragons in 3 groups of which 1 was the elite stronger dragons (black dragon), about 5000 Dragonflies on 2 groups (these are the only easy to kills mobs in that fight), some 150 Knights, and 213 unicorns- so a leadership around 22 K.
Sadly in my game i have only the upgradable sword, which was a tough fight but turned the crappy sword into nice +2 Att +2 Int Flame sword.
It seems items can have multiple levels as well, even without upgrade. As last game i know i wanted badly a helm that had +3 INT and was too expensive for me. This game i got the same helm, but with only +1 INT. So luck with items has more effect then character building id say.