I'd still like to know how I can wipe out a couple enemy parties (as in, a mass 4-party horde is usually the only way they'll even stand UP to me and I get any sort of real fight out of it) and no sooner have they been defeated, then IMMEDIATELY after I see *such and such town* is besieged by *loser I just wiped out*
NPCs get a bit of an unfair advantage, I think. Rather than having to flee back home like you do if they lose, I think they just immediately respawn in their home city and have a fresh party waiting for them. No matter how many villages you burn, and how many times you wipe out their army, they have an endless supply of troops waiting for them.
It also bugs me that they can run and hide in their big cities and you can't go in after them.

This morning, though, one who was raiding my kingdom's villages made the mistake of retreating to a castle instead.
Knock! knock!
Who is it?
Landshark!