This was the original plan for territory bonuses.
Yup, which at no point meant what you suddenly changed it too. It was always used a cost reduction bonus for new designs.
Conversely, I don't see it fair for Arstotzka to spend a single revision to drop their horses to Normal Cost when Moskurg spent several phases getting lancers with their plains bonus.
We were not spending a revision, we were using a given expense credit to lower the expense of a design. I see no reason why we should not be able to do that.
If Moskurg wants too, it should be able to use an expense credit to drop the cost of it's armor from Expensive to cheap.
I didn't see it as fair for Moskurg to similarly spend a single revision to drop the cost of their scale mail to Normal Cost so everyone in their army can walk around fully kitted-out when they don't have the mines in the mountains.
I do not see any issue with that. Their chainmail is a design they started with, why should they not be able to make it cheaper if they want to spend the effort?
So when I mentioned this to warn them against attempts to make cheap horses or cheap ships, it was not to exercise my clear and obvious bias towards Moskurg, but to prevent them from wasting a turn attempting to do something that wouldn't work.
The problem is that you changed the rules to protect a Moskurgian advantage, not that you eventually decided to inform us of that fact.
There is no reason for it not too work. There was never any prior indication that it would not work. The fact that you're faced with suprise from both sides is clear evidence of that.
With the entire realm of magic at both sides disposal, I didn't think preventing one level of expense without an accompanying bonus would be such a big deal. Lightning defeats steel troops, and caltrops defeat horsemen, after all.
In that case, your descriptions do not at all reflect what goes on in the battlefield, and this entire game is pointless because we have no idea what's going on.
You described the Cavalry as a massive danger, an overwhelming force that we could not stop. Is it then surprising that we want it too? If you're now saying that cavalry is not important, then I have no idea what's going on anymore.
((Also, faraday cage => lightning does fuck all to steel troops)).
BUT, if people would prefer owning the territory gave a bonus to future designs requiring the accompanying materials, then I'll do it that way. Arstotzka can spend their revision getting an equal number of horsemen as Moskurg, and Moskurg can spend their revision kitting out every foot soldier like Arstotzka did. I personally don't think that makes sense, but if both sides agree then I'll roll with it.
I would like for the rules not too suddenly change midgame specifically to twarth our plans, so yeah.
But anyway, you've told them our plans now, so so much for not helping Moskurg. You're giving them free hints on what the opposition is doing.