Man, that first page is hilarious.
If I'm going to be sending a couple dozen peasants with sharp sticks up against a thirty foot tall fire breathing dragon, why, in or out of my right mind, would I want them to fight to the death?
Crazy shit like that really ruins the realism in a game. That dragon should be breaking those poor peasants just by existing. That should be one of the perks of having a dragon, everyone shits a brick and runs for their life when it comes after them. Only well trained troops should be sticking it out in such a situation, and only when they have a shot in hell of surviving.
Routing when done right doesn't make combat tedius either. It makes it less tedius. Fighting to the last man, that's tedius. Oh look, I've won, now I get to spend twenty minutes killing this itty bitty army. In the TW games, those itty bitty armies go oh shit, he flanked us and charged us in the rear, ahhh! splat.
Accurate morale is realistic, makes units like cavalry and ranged actually work instead of being the fake balanced crap they are in most games, streamlines the game flow, and opens up a whole new spectrum of tactics and unit designs. Instead of some retarded stat modifier, death incarnate can actually take the field of battle and strike terror into the enemy.