The important point is that it's not hard coded or an engine limitation, then the possibility for huge armies still exists (assuming one rebalances other game mechanics to make them viable).
Exactly. That's the most important thing. I had assumed since everything else was left open this would be as well. It's just always nice to get clarification and Stardock is awesome at delivering. 
Thanks Austinvn
So what if it turns out to be laggy as hell on a high end machine then what will you do? My hope is that you will adjust to what the game and average PC's can handle. I would really like to play a DL mod.
At that point I would scale back slowly until things run the best and on "most" machines just as I've done and seen it done over the years at various jobs I've had. Fear not Bellack. That last thing i would do would be to waste 2-3 months making a Mod no-one can play.
When it comes to the DL Mod it will mainly come down to a balance between two things.
1 ) What sticks closest to the Books storyline.
2 ) What is the most Fun for the player fitting in with the Epic nature of Dragonlance.
Who knows. After we get the tactical battles and we get to play with them a bit, maybe I'll find that I can get a truly Epic and Grand feeling with only 5,000 soldiers on each side. It will all come down to how it "feels" vs "how it plays". Just don't expect this to be something I can do over a weekend. I'm anticipating at least 1 month, more like 2 as I'll have to learn a little Python for scripting some of the world events that will take place to further the player along the DL story.