In reply to your examples:
1. Pygmy is actually one of the best spells in the game. It reduces the target's health and damage by 20/30/40% (purely from memory, i could be slightly off on the exact percentages) in 1st/2nd/3rd levels, so the bigger the stack, the more effective the spell is, so don't knock it. Slow and haste are useful for anyone. JUst because you prefer to be a chaos mage doesn't mean that everyone is, some prefer buff/debuff spells instead. Also, i have found that enemy heroes DO cast offensive spells, so don't make a sweeping statement about a game before you have played it through several times.
2. First point: res. doesn't work on Black dragons, nothing will return themm from death. Second, what you point out as a flaw is actually good strategy. I does make sense to attack the weaker stacks, rather than the ones that you barely hurt - otherwise you make no real impression on the enemy. Oh, and the AI DOES know how to use concentrated fire, I have had battles where the enemy did nothing but target the stack i least wanted to die. Again, don't make stupid, sweeping accusations against a game before you have even half way completed it for the first time.
The battle AI is just fine, and quite challanging at times. If you find it bad, stop playing on easy.
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