From what I noticed Discipline while increasing damage it does morale dmg as well. The best way to notice this is to add a line to the static_modifers.txt to the very easy player rows: discipline = 5
This gives you a total of 600% discipline.
Now add a line tot he very easy A.I.: Land_morale = 10 (or something like that)
This will give the enemy armies +10 mora which - at start - would mean around 12-14 morale.
In the end the enemy armies morale will fail in a matter of seconds while having heavy casualties despite the extra morale they have.
in the late game units themselfs have high morale and dmg modifiers while your discipline will never be much higher thant 120-140% and this keeps armies at line. If you'd cheat yourself to higher discipline the enemy would falter in morale just as easly as in early game.
So I'd say discipline is very important despite the fact that late game armies decimate each other. Its easier and safer to route the enemy and hunt him down.
On a matter of Italy vs Austria. If you are attacking keep in mind that those provinces i the mountains can have -4 or -5 terrian modifier for an attacking army. If you do not have a general with 5 or 6 manouver skill, dont even try. You could retreat - this means losing the battle with almost only prestige dmg - and then move in again in hope to get a better terrain modifier, well.. like -1 or -2. They tend to have good generals as well so keep a close watch on them. if you see the enemy army has a general and yours do not you'll lose the battle even if you have 20-30% more troop.
And ofc Land tech is a dramatic modifier as well. If you ave land tech 6 and they have land tech 9-or 10, you are doomed. Period