Normally, mixing different kinds of soldiers, such as for instance, the classic enemies, elves and dwarves, lowers the morale of the other kind of soldier. The same goes for Knights and say, Trolls. These kinds of guys just loathe each other. While morale is definitely affected by mixing different kinds in this PS2 version, it doesn't have a tremendous affect on your battles until you're fighting a seriously deep, deadly army. While the PC skeleton of Heroes of Might and Magic is definitely still intact, several aspects have simplified and sped up the game.
Resource management is stripped down to nil.
So, no management is required to, say, continue seeking materials or resources for your castles. The only real management of resources is to keep the armies funded, and for what it s worth, this can be difficult at times. But it s certainly not complicated or sophisticated. But the act of managing your castles is almost completely diminished. Castles are handled differently too.