In KBTL, I seem to remember that first islands armies like Archmages, Inquisitors, Royal snakes, Bowmen and Knight/Paladins/Cavalry rock.

After that, find royal griffins.

Next big step is Green dragon if you are a magic user, red dragon otherwise.

Other good units are orc shamans, dwarf canoneers.

If you have items like +X damage per unit (assassin dagger or other), a good bet is an elven army : dryads and faeries.

 

I also remeber that moral is very important. At top moral, you will critical hit very often.

Yeah, I like moral. I tend to try hard to not have mixed races in my stack if possible.

Am I the only one who plays High morale elves (Hunters, Druids, Dryads, Black Unicorn and eventually Werewolves elves)?

As Colin McComb said, Elves are awesome!

Never bothered much with elves, mostly because whenever I was late enough in either game to get the option, I already had an army of other stuff and easy ways to get reinforcements.

 

I did like the dwarves in AP though.

I must say that item morale was not covered sufficiently (as in not at all) as I learn my dragon sword of awesome is no longer usable (and there's no way I can suppress it at my current level)

I remember getting a tutorial text on that somewhere, but can't remember what it siad other than subdue when it goes out of control. Think it's related to the troops in your army (as in, a demonic weapon won't like it if you're running around with a bunch of elves).

According to online, my sword just suffers -5 every combat (but gains +9 if the combat involved dragons).  I had no clue about that before plopping down 45k gold on it hahaha.

Finally finished the game, it was a very nice conclusion and the last few parts of the story really flew by.  I did 38% of my damage with my spellbook, 18% from my spirits, and 44% from my creatures, which is a cool breakdown.