GoblinCookie said:
If a militia unit is a poorly trained and equipped militery unit it should be able to become an infantry unit after enough battles due to capturing equipment and gaining combat experiance. Also the player should be able to upgrade them too at a considerably lower cost than building a new infantry division from scratch.
I don't really agree. Depending on your definition of militia (Volkssturm, Soviet Class C Infantry, light colonial troops (I don't want THAT discussion to start again

)) there is some merit to your suggestion. But capturing equipment, although being historical to some extend, could not "upgrade" poorly trained not-quite-combat-fit troops to Front-Line Infantry status, same with experience. Militia are quick to build, have little training, little equipment and so suffer higher losses, which are then replaced by other militia-trained militiamen. So experience shouldn't really accumulate significantly ... If you stick to the Volkssturm definition (which I usually tend to do, Home Guard etc.) then combat-fit men 18-40 (?) should go to A-rung units, militia is not meant as a Front-Line fighting force, only as stop-gaps. As you said they lack the heavy equipment, capturing it would not necessarily allow them to use it (artillery-craft is not that easy to learn, especially in coordinated doctrine form etc.).
So I'm strictly against Militia turning into infantry automatically, maybe they should gain experience and veteran status, but that's summin different ...
As with the reduced cost for upgrades ... fighting militia style (mostly defensive) and infantry-style (coordinated combined forces attack) is not the same thing ... time and equipment has to be put in to gain the extra skill ... anything else would just reek of exploit ...
Keep in mind: The above is just my own analysis of the situation and I might be wrong of course (I was in that funny little cavalry thread, so it happens)