I saw the same thing, although with only the extremely limited sample of Portugal and what I could see of the conflict with Castille, Aragon, Grenada, and the North African nations. It surprised me because I actually didn't have enough guys to seige Fez and Tangiers at the same time after a single battle and had to rush troops to Africa. The Castillans and Grenadans completely eliminated one another and had to build armies from scratch - after which they did it again, and had to rebuild again.
This could be pure luck - I've only seen perhaps 40 or 50 battles so far. But it seems as if it takes longer for morale to break, and I've noticed that the results appear - and I stress 'appear' as I don't have anything like the data to be sure even on a gut level - that the battles are more random. That is, that the random number generator is less 'streaky' than it was before, at least during individual battles. The little advantage arrow hops all over the place now, whereas before once it started moving in one direction it rarely swung back in the other.
Again, virtually no data to back any of this up. It stuck with me because I noticed it within the first few years of my first game after the patch, that battles were going differently than they had in any game I'd played previous. Much bloodier.
I like it, btw. If you did change something leave it alone. It'll make wars harder to pursue and manpower ratings far more important than they were prior to 1.05.
Max