1) To destroy, say, 4 cannons, you need to deal 100 more damage with magic.
2) Against neutrals, 25 HP is quite significant. + it somewhat increases the effectiveness of regeneration.
2) Against neutrals, it doesn't matter how much health they have: the medusa's regeneration will restore it all.
Not everything is decided by Fireball.
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Regarding crossbowmen: I remember the mages from the fifth game, the situation was a little better there, because they at least had magic in case they needed to be locked down. + the alt-upgrade has some kind of more cunning shot; they hit allies much less often, so they can be safely locked down.