I have no problem with being able to retreat units and so forth, and in a simulation like Total War I think that it is just fine - but I think that for units to rout ala Total Wars would really suck for this type of game.
Now I have no problem with a Fear spell or something that makes units run away as long as the spell is in effect - I expect that. But having battalions just wimp out because they are getting creamed, I think that would not fit in E:WOM.
That's it. If anyone feels differently about it please don't post. 