It helps balance out a great deal. I try not to use the pause often, since that makes it somewhat easy.
Also, it seems he released a beta version fairly recently.
One example of the balance is that Chaos raiders have a really short range ranged attack now, and Chaos units are super cheap to build comparatively
Personally, I think it improved LoMSE a great deal. Air and water are pretty good now.
Solifuge, I loved Chaos mages. Did you ever play around with re-incarnate? It was a spell that you cast on a dead unit, but it was random what the unit turned into once raised. It was the only way to hear the voice acting for the marauder units if you were lucky enough for the unit not to turn into a chicken or something.
The most epic battle I had in LoM was playing as an Earth Terramage lord, and hadn't really expanded much. Balkoth appeared on the edge of the screen with his army of doom after killing a different faith. I spent all my resources on a mercenary army to hopefully weaken him enough to make him retreat. What does Death do on the next turn? Moves the second army in from just out of the range I could see and annihilates the mercenaries before Balkoth moves a third army into the capital. That army was a lot of death units led by a fire warrior and mage who were around level 8. I had a stone giant throwing rocks from the walls, and a couple squads of ax tossers. Basically, the ranged units annihilated each other and I was left with a shambler, 1 low level infantry unit of dwarves and a unit of earthen dark horsemen with my mage lord who was spent. I sent the horsemen out of the doors and they managed to kill the surviving javelineers and the fire mage, before damaging and being killed by the fire warrior and his halberdiers. The infantry and the mage then killed the fire warrior due to his slow hit recovery while the shambler distracted the halberdiers. The halberdiers killed the infantry, and the mage realized it was time to go and made it to the exit. Balkoth was out of movement points, so the mage managed to escape for the time being. I don't think I ever finished that game, though.