It would be nice to have something to replace them with... Vestaloks really can't be placed in the 1st tier. There were suggestions to replace them with pikemen, but I agree with comrade Ment here; pikemen and halberdiers are roughly equal in strength, and the difference between their tiers doesn't make much sense.
If Vestaloks were placed in the 4th tier, it would be necessary to move archers and halberdiers to lower tiers, and this would be a very controversial change that would greatly affect the faction's balance.
Secondly, peasants should be hungry, impoverished, and generally belong in the fields (what about the army and the bourgeoisie? What will we feed them with?). Infantry can be represented by two types of units: basic, numerous units and elite, more trained units. For example, in Heroes 7, humans have legionaries and justiciars (there are also landsknechts, but they belong not in the champions, but in the elite, and even then, perhaps only as a replacement for justiciars).
In Heroes 4, there is infantry on levels 1, 2, and 3 (I don't remember what the first one is called, the second is halberdiers, and the third is crusaders).
I think we can give them different roles – some to protect allies (an ability to protect allies from arrows and the like), others as an attacking unit (abilities similar to stun, cleave, charge, and the like).
Added 8 minutes later
In fact, I'm planning to do this myself – the 1st and 3rd tiers will be infantry, NOT peasants. The 1st tier will be defensive (either the entire unit or one of the upgrades), and the 3rd tier will be attacking (either the entire unit or one of the upgrades).
We can also try giving the 1st tier the visual of a halberdier, and the 3rd tier the visual of a swordsman based on a vampire (replace the head with a helmet, recolor the textures, and it will look good) – I've also thought about this; there are screenshots in the "Harmony" topic – I've already tried something similar
Блистает там воздушностью прогалин.
Но между кедров, полных тишиной,
Расщелина по склону ниспадала.
О, никогда под бледною луной
Так пышен не был тот уют лесной...