Loads of 1-unit armies running around isn't all that realistic or fun. Generals will be hired on the spot, you'll need to nominate a replacement immediately after losing your General (once the battle ends) so there is no period where your army is just dead weight.
As for Generals and armies - the larger your empire is the more you can have. I think the starting limit is 3, so that is still plenty. The idea is to stop tiny nations having death stacks, and of course adding a dimension to the campaign map.
I'm under the impression line of sight literally means line of sight - you can see units on a level field, but if they're hidden behind buildings, cliffs, forests or hills you can't. Realistic really. If you're afraid it'll make the game too hard maybe knock it down to easy?
I use the pause button all the time (and slow motion even more)
[This message has been edited by Aftermath (edited 08-30-2013 @ 05:37 AM).]