the quality of shadows can be improved by changing the parameter setvar gfx_depth_tex_resolution in user_a2.cfg
the point is that they are still very "conditional," meaning they don't scatter, they don't render properly on models, but they seem to consume a lot of performance.
I'm not even talking about the proper rendering of shadows in the folds of clothing, depending on the position/intensity/warmth of the light source. In short, this thing that's used as shadows in Heroes 5, in my opinion, doesn't significantly affect the picture. Dancing around with it won't fix the situation, so wouldn't it be easier to just ignore this problem? After all, is it really that necessary?
I mean, if you're interested in working with the most modern graphics and a photorealistic picture, why not do it on a platform where you can actually achieve that?