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Everyone has said their piece about the balance, so I won't add to the chatter.
I agree that nothing should be replaced.
2 Warmonger - the mod you posted only changes the appearance; all the stats and abilities remain the same. off The purple knights look great :) /off
You can use the knight replacement if you're playing against the AI and it's too easy even on the highest difficulty. Set the AI to Necropolis, use a mod that changes the messengers to knights, set the hero difficulty, and try to defeat it.
off P.S. I read an article somewhere where the developers talked about how to improve the AI without using any mods. If anyone is interested, I can share it. /off