IMO the only real problem with the game is the AI. I love pretty much everything else about the game. I love the sandbox feel and the loose quests. The heraldry and lord/vassal system is great (and probably much improved in 1.0, we'll see). AI is the weak link.
If the game was multiplayer, you could get away with the current mindlessly charging at the nearest enemy AI. But since it's a singleplayer game, it HAS to have good AI to provide challenge to the player. Currently you can take to the field with inferior troops and wipe the floor with much larger armies, simply because they use no tactics. Mounted units mop the floor with unmounted units, but if the player controls the unmounted units it's the other way around - you can hold a line and massacre the mounted troops. If the AI used tactics like this it would provide much more challenge to players, and you couldn't just rush in blindly every fight and still win.
I'm hoping that AI is improved significantly with 1.0. If it is, I'll definitely find myself playing the game a lot more in the near future.
Don't get me wrong, even if it's the same ol' crappy AI, I still count the game as one of my better purchases. You just can't beat $10 for all the months of enjoyment that I got out of it, and even at the current price of $29.99 it's a much better value than other products out there - especially the SPORE fiasco...
Either way, I guess we'll see soon.