Balance in Heroes 5.

That's exactly the point – there should be a balance, and there shouldn't be a clear distinction between the strongest, weakest, and middle-tier factions. Each faction should excel in some areas, be average in others, and be weak in others. And that's essentially how it is.

It's foolish to think so. The Dungeon faction wins through the strength of its units, but they are few in number and expensive, and losing units greatly affects the army's combat effectiveness. Their hero has very little mana but a lot of spells. The Necromancer faction relies on the number of its army. The Dwarfs are good, but their speed is low. The Magic faction's strength lies in the hero in battle, and the units are needed to keep the hero alive. There is a different approach for each faction, and they are all equal.