The hard code wipe out is still there, but the numbers game is a little different. I'm not a programmer, so I couldn't tell you why, but my guess is the change makes it less of an advantage for the defensive force, not much but enough.
That makes for a better 1st battle... You don't lose all of your moral at the end of the 12 day cycle, even though you may lose the battle. That means you may not have alot, but even 1 is a case to avoid the insta wipe. After the 12 days, you can pull your men manually too, so you can decide where to retreat.
The two of them together are just enough to give a fighting chance, and it isn't fool proof. Generals and Terrain can still really ruin your day.
The biggest improvement in my mind is when you have fairly equal forces going toe to toe. Before, the defense would have a huge advantage and smaller forces could hold against gargantuan invasions... Now, it's easier with a goodly sized force advantage, but if you don't have the means to get one, with some skill you can work armies and units in and out and take a province and keep it held. It's much more a dance as opposed to just hitting their thumb with a hammer. You just have to remember the higher casualties and not over extend too far. It will cost you to take the ground, but it's doable. I'd much rather fight my way through than sit around and wait for the other 20K I know I'll need for the army to take it the other way. It's going to cost you the same, it's going to take the same amount of time, and in the end you'll likely lose the same amount of men... But now I get to play the game instead of sitting and watching units get built...
I was playing a game this morning testing the new Advisor Mod and had some really good 'draws', if you can call losing half an army a draw. Equal size/strength/generals were doing fairly equal damage, with terrain and tactics and extra men in or out being key to winning, losing or just plain getting out. I had no fear of getting routed and wiped without at least a shot at getting away or pressing the attack. I also found battles are just as deadly next time around if you push too far or don't get out fast enough. I found the AI working feints and backdoor moves quite well. Many times I found myself having to scramble to cover ground admiring the sneakiness of the adversary.
Just to give you an idea of a typical battle sequence now...: I was just playing as Castille, and had annexed the Papal State. I had a revolt pop in Abruzzi, a 1/12/1 with minor general. My general was barely better. I sent a 2/8/2 with the general from one side, and a support 4/4/0 that arrived 3 days in from the other... When all was said and done, my initial force was down to 1300 men, and the 4/4/0 was at 2900/3000/0, while the rebels survived, with a 123/3800/500 or so force. I was able to follow up and remove the offending rebels with the johnny come latelys while my original force had to go hide in Sienna for awhile...
Had I attacked that -4 terrain with a nearly equal general in original form, both my armies would be toast, and within the twelve days. Now, both sides have survivors. Because I have a rather largely superior force, and because I used a split approach and staggered attack, I was able to overcome the terrain, albeit at great cost, and move into the next province and finish off the Rebs. I find that a much better battle as a whole, with a decently realistic price and outcome. It's not something I want to have to do everyday, but if I have to, I know I don't have to have a ridiculously huge army to go and move the Rebel mountain.
However, had I not had the extra forces, I would have lost. Should have lost. In fact I never would have advanced. I would have had to wait for another army to be built or ferried. Had I tried to take that province with the single army, I would have lost my army, as I should have for not using decent tactics, or anything resembling intelligence... The insta wipe is still very active, and it loves to reward stupidity with insta-clears.
I watched Austria take a province from France doing something similar to my actions against the rebs, displacing a 16K INF unit with a 4/12/0 and a minor INF force brought in later for the boost. They then snuck 2K into the retreating province on the French, and followed them with their main army. France was still 10K strong, but the timing was perfect. The 2K kept the defensive modifier as the main army hit within a day of the battle starting.
France was again displaced. Both sides had to stop there and wait a bit to heal up, but France got impatient and charged in, against a -4 terrain. Without backup, she dwindled to 437 men and retreated back. Austria could not pursue and let her go... (!?! I know !?!) If France had hobbled that force home it would have survived the day. As it is, the Austrians were so hurt France actually attacked again. (!?! I know !?!) Do I have to mention they were wiped out...?
I don't think most HT³ players that like the new system will be bothered with the outcomes, but for those of us that didn't, it was a refreshing change, and made warring fun again...
Hope that helps to clarify it a bit.
T