Yeah, it's because of that 88k item, isn't it? We are playing similarly, DG, like you said before. I have Dark Paladins, Dark Knights and Wizards, all with insane morale, and I just bought a Turn Back Time scroll for use with the Knights. My fourth and fifth units are currently Archdemons and Executioners. For the Archdemon you need to use level 3 Healing (after doing the relevant quest to make it 'dark') and the others are all there to slaughter big stacks. And then with Phantom if I lose too many for one resurrection, there's the old Paladin + Phantom routine.
You are way ahead of me now - I'm level 39, just having cleared Sandy Island except for the final bosses and Tristem, same deal there.
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