I like Pistols and Sabre as mounted weapons. You don't really have a chance to reload or aim very well in a charge so melee combat will become more important. So yes, what you see here is limited by the amount of art I have - in fact I am getting all the gameplay finished before I add more breadth to the art and units.
Cool, yeah, I guessed as much. It's a good tech level/setting for all that kind of stuff!
As for Canned Gameplay...
Ahhh ok, got it. So even the canned version would be free-roaming and non-linear, which is cool. As long as you still pick your battles and have the result of your battle feed back into the strategy game and vice versa, you don't lose too much.
Also, you can get the gameplay working and develop the world generation to fit whatever turns out to be fun: You handcrafted balanced world should be a good reference point!
PS: I hope that there is a mix of balanced/unbalanced encounters even in a balanced world. It's nice to have to make a decision about whether you can handle the battle