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BigDisAwesome said:
Even though you're theoretically saving resources, in the long run you're wasting gold. If you were to hire a couple armies to act as PD, you'd save a lot of gold and have a better force.
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Not much use if your a resource heavy nation and happen to have a lack of resources though, plus you end up with troops sat away from the frontline doing nothing but taking upkeep if nobody attacks. PD can do the same job without the upkeep.
Then of course there's the problem of attrition. Troops can be affected by spells, dominion and the like while PD is not. They can also be ground down by mages, archers or similar on fire and flee orders. Against PD such a tactic is completely useless.
As for wasting gold, if the troops you buy are killed that's it, you need to buy a whole new unit to replace them. PD on the other hand will continue to provide the same units without further expenditure until the province is taken. Technically, the cost to keep a group of 10 troops defending a province could end up being much higher than the equivilent PD over the long term through casualty replacement alone (before upkeep is even taken into consideration)
As for improving PD, it would be nice to see some actual defences rather than simply troops. Or has the Dominions world not heard of ditches, redoubts and the like?