Playing on insane - unit sizes (hit points) get inflated, monster levels are quite high - but attack, as far as it's not related to number characters in a unit, does not change. The level increase hurts for Fallen Enchantresses etc., that do damage dependent on level, but otherwise - it's just a numbers slugfeast. And because I also play a Wizard with hypnotize - and spellcraft items stack ... I haven't produced any own unit except for settlers (sorry, pioneers). The failed wizard's are quite nice to have in your own army.