There is not a word here with which I could disagree.
XP split and reduction just shuts down one possible strategy and gives nothing in exchange.
Heroes are mostly single men units, with nothing that shines.
They are not fun to play with now. Except maybe the sovereign, and only because it's you... Otherwise, he mostly sucks in combat (like all other heroes) compared with simple troops. I did it on challenging: build armies with three troops and wipe out the map... Not a big deal.
I've shut down my beta test and sworn not to play LH again till that restriction is lifted. If I want to play troops only, I don't need FE:LH. I have plenty of other games for that. Heck, for that matter, even Total War does almost as good with generals, who are at least useful, and it is a long stride before LH in the tactical field.
If that's what people want the game to be so be it ; then make each hero a general with serious troops management abilities and change the focus of the game with less maging and more tactical combat. What we have now is not heroic fantasy (where are the heroes ???) nor is it a wargame (where are flank attacks, morale, hill top positionning etc...) ; it's in a noman's land that looks more like a bog that a peak...
PS: and no, any scheme to keep some split up is unsatisfiying. The fact is that now you can win the game with troops only. There is no reason why you should not be able to do the same with heroes only (after all, we're in a Heroic fantasy setting!) ; it just doesn't have to be as obvious as it was before. But troops enhancement brought in LH just ensure that.