First, let me apologize for my bad English, I'm from Brazil and write in English is not my best.
My idea to make the battles more interesting and tactical is to introduce the concept of MANEUVERS, each unit can only make ONE maneuver at every turn.
First we have to separate the action MOVE from the action ATTACK. Those would be the two basic MANEUVERS for all units. Currently if you attack before moving you lose your movement, the same have to be done in the case of moving before attacking. That is, either you ATTACKS or you MOVE in your turn. This would reduce the kiting (Units with high initiatives could still move in the first turn and attack in the second, before the enemy have a chance to move).
From that we may add new maneuvers based on WEAPON and EQUIPMENT that the unit uses. For example we could create the maneuver CHARGE for most weapons (not bows) which would allow the unit to move and attack in the same turn with +50% in the attack and -50% on the defense until the next turn. This already happens with the shield, which allows double the defense until the next turn (could be modified to allow move in the same turn. Imagine a wall of shields advancing against your lines. And have the cooldown removed, permits your lines to maintain the wall of shield every turn.)
With that change, most of SPECIAL ABILITIES and SPELLS existing in the game would have to be adapted to this concept of maneuver, or you MOVE or you use a SPECIAL ABILITIES/ SPELLS.
I think all that could be done in a mod but I would like that frogboy could take a look at it, because the IA to this sort of thing would be well beyond my reach. And I really believe that would make the game much more interesting