Originally Posted by Figment
Having smaller units (1-4 players per unit) makes everything far more dynamic, more cost-effective, allows for use in much shallower water and more limited space, such as inner-lakes (meaning the map can be a lot smaller too which aids game play performance) and most importantly, is easier to balance.
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If I understand correctly what you're saying here, I think that this would be the best compromise: Ditch the gigantic ships like battleships and carriers in favor of smaller water craft that can be more versatile within the continent instead of just around it. Lakes and rivers could be contested in/over instead of entire oceans. Instead of ships, it'd be battle boats. In terms of balance, usefulness, and ease that it can be implemented, I think this would be best.