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The thing is, the enemy's troops might be positioned in such a way that we won't be able to arrange our troops in a tight formation. The bonus for a single stack is unlikely to even reach 5. Again, if we're attacking, someone will still remain in the rear (archers and possibly someone for cover), which also won't provide a significant bonus. When defending, and using tactics, you can arrange your troops perfectly to get noticeable bonuses, but what's the point if they can be scattered during the battle? After all, the stacks won't stay in their starting positions all the time. Perhaps it will work against a Barbarian, but even then, he can only attack after using his war cry. He'll cast "War Cry" (+10 to attack and +1 to speed at level 20), and all the efforts with formations will be for nothing. And if there are no obvious attackers and defenders on the battlefield, the troops will be randomly scattered, and it will be quite difficult to organize a formation that doesn't hinder attacks on the enemy's key stacks.
However, I disagree with the summoning... Dwarf troops are among the best in the game in terms of efficiency. With roughly the same number of troops, a dwarf will be stronger than many others, and extra reinforcements won't hurt, as long as you summon troops wisely, they won't get in the way. I don't find the Ring of Exile very often. You also need to upgrade Exorcism and take Chaos. This setup is only possible if you're going for a solo campaign. It's not profitable to sit in defense because the demon will overwhelm you with darkness, and you won't be able to use light effectively; the imps won't let you. Not to mention the demon's powerful ballista, which will also do a lot of damage.
O God of Earth and Altar,
Bow down and hear our cry,
Our earthly rulers falter,
Our people drift and die,
The walls of gold entomb us,
The swords of scorn divide,
Take not thy thunder from us,
Take away our pride.
G.K. Chesterton: English Hymnal
Bow down and hear our cry,
Our earthly rulers falter,
Our people drift and die,
The walls of gold entomb us,
The swords of scorn divide,
Take not thy thunder from us,
Take away our pride.
G.K. Chesterton: English Hymnal