Everyone who thinks it makes it more strategic is, I am afraid, simply wrong, and this is an area where I do not think all opinions are even.
It makes the game worse as:
1. As noted above, it simply encourages people to restart the game as soon as they lose a unit. People saying "oh it is ok because I just restart" but somehow have not noticed this as a massive flaw in a strat game where you have to restart a battle because you took one damn casualty worry me.
2. It does NOT encourage strategy. Instead it encourages the complete opposite. Strategy implies risk, losses, tactics where the idea iof total 100% victory is stupid. Those of you who for some reaosn think that the system by which losses are permanent implies realism- always a stupid concept in a fantasy computer game0- should think on that.
Because there are several units- often the Mage types that die incredibly easily- that you simply cannot do without and will not be able to complete the camapign if you lose them,. then indeed losing that unit causes a re-load. And that in turn means that your opponents are playing a completely different game to you. YOU are playing to win the battle. But all they have to do is kill one unit to win.
Just to make it worse, the computer AI actively takes advantage of this. He will suicide run his fast units right past your dopey guys, through your lines your lines (there seems to be no interference rule to prevent units moving past other ones, like most decent strat games have) and kill your Mages. Now, strategically speaking the computer has boned himself- you can easily destroy his over-extended forces.
But it doesn't matter, does it? He's killed the guy you need, so even though he has just thrown the battle away, you still have to re-load. It's a complete mockery of the idea of strategy and tactics.
In the end, you are forced to play one way only- extremely cautiously and defensively, every single time. One tiny slip up in your defence and the computer will make one of thise ridiculous suicide runs. It allows no variety. Adds strategy? You have to be freaking joking. These games allow almost no strategical variation at all.
They would be MASSIVELY improved by allowing downed units to return after the battle so that you didn't have to win every single battle 100% with no losses each time. It's an absolutely appalling gameplay decision that needs to be ridiculed and derided as much as possible, and it ruins what otherwise could be a good series.
Game ruiner- an absolute game ruiner. It's the kind of thing that makes me despair. People thinking it adds realism make me despair still more.