Added after 19 hours 22 minutes
I watched a video here:
http://www.youtube.com/watch?t=548&v=nJuWPT5KyjQ (battle for Azkaal, starting at 9 minutes), and I realized two things:
1) On the difficult level, there are indeed 1120 dogs - so replaying is pointless;
2) The author of the video (in which he won, of course) actively used "Evil Blood" on the Berserkers, which significantly reduced the number of dogs by the end of the battle - the trick is that I CANNOT cast "Evil Blood" on the Berserkers (and that was the idea). Is this a feature of the latest patch?
And the author of this wonderful video:
http://www.youtube.com/watch?t=553&v=n3DLsc7zevA
when casting "Evil Blood" on a nearby enemy unit (without neighbors), it simply skips its turn, but for me... GUESS WHAT - it attacks ME as usual!
Isn't that lovely?
Any ideas? :)