Awesome in MP though for the lategame major battles where you rotate stacks
I've had a hard time finding MP games where interest is consistent enough across the board such that it even makes it into the late game *and* had the usual blocs not afford one side a major advantage, but in a pitched battle I suppose you'd be correct. Even then, its utility against an additional stack or reinforcement speed is questionable (an extra stack in the rotation effectively allows full recovery as well).
It seems like a very niche use, but I don't have a problem with it. Rather, the impact of generals right now is probably too overwhelming, in part because of their random nature but also due to their simple tendency to overwhelm everything that isn't "tactics". Having something that is useful in some situations and not in others is good design, because you have to think about when to use it. Maybe morale recovery could use a slight buff, maybe. However, wrt to general pips it's become a game of "always max these because an advantage here will double or triple the casualty disparity in your favor while factors like morale, discipline, and combat ability can't even come close by comparison".
Its the design philosophy that made you happy enough with our games to stick around for 12 years it seems.
A true master learns eternally. Surely, you don't think that your mechanics can't be improved? This game has never been balanced, and given its nature it can't be (no way can Kathiawar be the same challenge level as France). However, the rate and quality of thought a mechanic requires in order to succeed can be improved upon, regardless of how long people play or whether people enjoy some aspects of the game currently. Right now, in most games tech and general pips >> other things and completely crushes them. The reason you say "late game" is that's the only time where you have large wars between nations that are likely to be relatively equal in those factors, such that otherwise trivial factors can possibly matter. In a late game war, you can have 30% bonus morale recovery speed such that you fully replenish in 2 months and it's not going to matter if you're at 2/2 generals and the other side has 6/6.
EU IV has a large number of kludge type mechanics or carry-overs that people tolerate because the overall experience is still enjoyable to them. That doesn't mean that those mechanics themselves are good, it means that people can enjoy the game in spite of them because other aspects of its experience carry them.