This issue might be inherently related to Medieval 2 rather than EB2 itself, but I would like to hear the opinion of other EB2 enthusiasts. Namely, when retraining troops, their experience get diluted when casualties are replaced by fresh troops. However, people have pointed out that saving the game, then reloading and assigning troops for retraining the very last thing you do (not moving units etc. afterwards) negates the effect and the unit retains its experience level after retraining.
Is that the bug and consequently an exploit, or is it a bug that the units lose experience all the time? In the original Rome: Total War units would automatically retain their experience level when retraining with or without trickery. In the real world, the effect is probably somewhere in the middle ground. Collective memory and experience, the ability of the leaders etc. contribute to the unit's performance and morale. While new recruits are not equal to veterans, they probably do not lower the unit's abilities quite as much if they are surrounded by experienced and confident companions and leaders with considerable fighting experience.
What is your opinion? Do you train in the end of the turn to retain experience levels or do you let it get diluted? How does AI come up with such high levels of experience early on in the game if they are subject to the same treatment as a human player without exploits/workarounds?