wenwell
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It is possible to win without using Berserk, especially if the enemy has archers. After some time, they stop reacting, and the Azure Dragons can be killed if there are enough of them, of course.
You can test this battle again with the enemy having full stacks. Perhaps it's not as unfair as it seems. The mechanics seem to be the same as in the Sacrifice + Phoenix bug, which means that the action of mass spells that shouldn't be mass spells might be the issue, and there might be other hidden problems. Aeris has something to say about this: http://heroescommunity.com/viewthread.php3?TID=37772
There's something to test here.