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Actually, I'm concerned about the changes to the growth rate. One-time growth feels a bit un-heroic...
What I like about this idea is that it could significantly change the overall gameplay and increase the importance of external dwellings (which provide a constant growth rate). Also, I didn't like that you could accumulate an unlimited number of troops. 500 skeletons occupying 1 space just don't look right. Giant armies that can be accumulated (in single-player) simply by stalling also aren't appealing. The balance in Multiplayer changes drastically with unlimited growth over long periods. Finally, a more role-playing-oriented approach, where even 1 dragon in an army is a formidable force, rather than just a unit of 5-10 that a hero can easily defeat with a direct attack.
But what do we lose? Epic battles in the long run, featuring legions of creatures? Is there really a significant difference between a battle of 250 knights and 600 zombies, and a battle of 25 knights and 60 zombies?
In principle, if desired, you can still accumulate large armies: if there are many corresponding dwellings (providing a constant growth rate) and cities of the same type on the map.