In World of Xeen, I played for about an hour a couple of years ago. And I suggest not just an eighth-level unit, but an ultimate-super-puper unit, like the Dragon King in the fourth game, only even bigger and tougher. You could choose between this awesome unit or a normal army. As for the balance... in King's Bounty, they struggled with the bosses.
Although, it's a silly idea that has a 99.9% chance of not being implemented.
And double-check the fourth game, seriously. There's enough good stuff there for ten games.
But the either/or idea sounds much better, yes.)
Ah... what I really dream of, yes, is (ATTENTION! A revolutionary and crazy idea) abandoning the "doll" system - so you have 8 or 10 slots, you can put 10 swords in there if you find them, or a balanced set of equipment, or a collection of 6 items and two useful features for them...
And, yes, realism can go to hell - but what realism are we talking about in a fantasy game?:)