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Firstly, the number of neutral creatures can be reduced.
Secondly, neutral armies consist of one or one and a half types of troops (one and a half if there are un-upgraded and upgraded stacks). So, even with (hypothetically) equal intelligence to the player, the AI will still have much less variability in tactics.
This type of gameplay (if someone likes it) can be achieved now by simply agreeing to play with mandatory auto-combat.
But I don't know about that. I'm afraid that auto-combat "fool vs fool" is not the same as auto-combat "smart vs smart". In addition, when it comes to neutral creatures, it seems easier to create a more or less intelligent AI than to do the same for an entire army with a hero. This should also affect the value of auto-combat.