The game is fun, but it could be so much more. Steam shows 59 hours of play and I started with the first (and very promising) release of the LH beta. While progress was made here and there, now especially 0.85 was a huge disappointment to me and while anything was said about the game's weak spots, I want to join the choir nevertheless now.
1) Souvereigns/Heroes suck and leveling them is no fun. Early and mid-game they are outclassed even by cheap troops (leave alone the completely overpowered spearmen) and after chain or plate is availiable together with stronger weapons, the only use I can find for them is tireless march, the army buffs of Commanders or simply reducing some unrest in new settlements.
This could and should be fixed. Make one class strengthening whole armies (Commanders) that naturally avoids the front lines and mix passive army buffs with cool active skills (time limited army buffs, orders like "change place" or "act now", ...).
Make Mages another class that usually stays behind, but let them have an arsenal of spells (and not only scaling through shards!) mainly limited by mana and character level. Spending three funky level-ups on Fire Magic just to get a simple fire dart spell is no fun, but specialization in particular schools could of course give bonuses. To spice Mages up you also need a bunch of new speels, feel free to borrow ideas from any RPG out there, especially D&D comes to mind.
Warriors/Defenders (and if your creativity is endless Assasins) should be designed to fight at the front. Either give them multiple attacks to keep up with growing groups of regulars (lets say one more attack every three levels with a maximum of 5 attacks at level 12) or just add "Henchmen" to their side, so hero units will in fact consist of two, three, four and lastly five equally to the hero itself equipped units.
If you go for Warriors and Defenders, give Warriors a good mix of powerful special attacks as well as active and passive army buffs, while Defenders could get unlimited counterattack while defending and a bunch of defense buffs for their army. Just make every class feel and play somehow different.
Please also consider giving us more then one skill point per level-up, the way heroes are leveling at the moment is legendary slow and boring.
2) Still blocking pop-ups? No need for that, just get rid of it. Give me a notification whenever a city is ready to level-up or some Heroes want to join me and then I will graciously pay attention when I like to and give the corresponding order.
3) Weapon balancing and variety! Spears have the best special attack, have armor piercing and make immune to counter attacks. All you loose is the ability to wear a lousy shield. Maybe shields should counter counter-attacks or whatever re-balancing you like. There are several good ideas on the forums how to balance weapon paths. Anybody using blunt weapons?
4) The new unit upgrade screen did not make me happy. Not that it is worse now, you just managed to make it visually more appealing while still being the same pita. We still have to click around like mad for every single unit in an army and it also is completely unflexible. Please forget about automatic upgrade lines and just open up the upgrade screen to something that literally allows a unit re-design. Calculate the difference in cost of all metal, crystal and horses, add production time as gildar cost and make sure it is at no time and in no regard more cost effective to upgrade units than to build fresh troops.
5) I don't play custom Souvereigns/Races, but even without power gaming I feel Procipinee (?!?§) is absoulutely overpowered due to the instant outposts without population and production cost called Arcane Monolith. Maybe that should not be nerfed, but other fractions could be compensated, let's say pioneers do not get destroyed when building outposts.
6) Horses and Wargs feel absolutely overpowered and are no-bainers. Spice it up by massively nerving them and having new researchable thechs to get them back on track (like armor, saddle, headgear, ...). Basic mounts should still give extra movement, but maybe nothing else or even cause drawbacks within battles.
Well, I know you already set the release date, but if not for LH, mabe you can spice up it's sucessor. LH feels like a polished version of FE and therefore is a good game, but there is so much potential in it.