Careful what you wish for.
Personally I would say the predictability and simplemindedness of PG/PC AI is one of the game's greatest strengths. As someone said upthread, "sometimes the computer needs to be stupid". Having the AI relentlessly hunt down any unit you are careless with is already an issue, ameliorated mainly by your army containing beefier units with better experience. That is, the AI never makes that first move, that then weakens our unit enough to be easy pickings. A better AI would see through easy stunts like that. In other words, by attacking in the "right" order, the number of combat losses would drastically increase assuming the same enemy armies. The very real risk is that the majority of players would find the game much less fun. (I know I found Modern General much less fun. It had the same stupid AI as the other five-star games, but since it featured modern weaponry with vastly increased ranges, even the rudimentary AI usually managed to kill the unit it set its sights to... and very Panzer General game is a fantasy hero game in disguise, so this was catastrophic to my enjoyment.) I fear the same could easily happen even with small "innocent" improvements in the AI!
This is not something that can be fixed simply by having different AI settings. The strength lies in the illusion (or fantasy) of being a real General fighting the Allies. If you can select a much smarter AI the box of Pandora is opened, and it will always feel silly to select a more stupid setting. (Obviously not including how the training levels should feature reduced AI)
The only solution is for us to trust Rudankort & Co in not making the AI any smarter than it needs to be!
