Target picking for army buffs is often crap. I love it when mages cast Berserkes on archers- or better yet, on other mages!
Which I suspect happened in the same game, so we've both been screwed by this, Manuk
As for Regeneration, both long-range and short-range versions would have their different uses, so I wouldn't say that the spell really needs to be altered. Long range means more and more units can be given regeneration as the battle progresses, though you do lose the precise targeting.