this game is jus a little unbalanced, you need to have it scale up the difficulty as you conquer more.
And the elite hero's should cost 100 or 1000 times more than they do now, they are much too cheap.
Also, I would reccomend some bonus for actually using your hero to fight - a moral bonus to damage or something. now it is too easy to sit in the back and direct crossbow volleys from the reserves.
I like the way the volleys are implemented. Does they type of archers/xbows in the reserves determine hit percent and damage, or is that unrelated? I think at least the damage should count, it giv more incentive to have better archers in the reserves.
I would like to see a better system for selling equipment, perhaps a one click per item option, rather than drag and drop. If you have to fight 3 or 4 times between towns it takes 5 minutes just to sell the loot!
This is a good concept for a game, but it needs tweaking. I look forward to version 1.1!