@Retropunch: The thing is, those two choices offer more variety than TW normally does. While technically I have the option to raze/loot etc in Attila it's hardly ever the optimal choice. The efficient way to play is just to occupy absolutely everything you can, taking a few turns out to fix public order and raise money/troops every now and again. Removing that 'obviously pick this' option means I'll actually need to deal with other factions long term, be that through diplomacy or scorched earth or farming them. Another possible benefit of this could be that it eliminates one of my favourite strategies. Expanding my territory all the way in one direction so that I can then move all my troops to the other side of my territory for a big push, with the majority of my land being safe. Now there will always be dwarfs/orcs/whatever in them there hills so I'll need to split my forces throughout the whole game.
@nenjin: I'm assuming you never played Attila? Horde factions in that game can make an army 'settle down/pitch camp' whenever they want, losing the ability to move but becoming temporarily analogous to a city. They can expand the horde, grow population, recruit troops, build improvements etc but have the advantage of their 'cities' being heavily armed and mobile. Of course this makes offence a little riskier too, because you're not just attacking with army #5, you're marching what's essentially your capital city right up to Rome. You can still raze/sack/subjugate/liberate cities you attack, just not take them for yourself. I see no reason to assume Chaos won't work this way too.