A great game. I played it a lot almost 30 years ago, and nowdays I still play it from times to times.
All Lords in same location? What for?
IMHO, the most important decision is where Luxor should be: recruting or comanding; i.e. defensive or offensive.
If defensive, the place shall be close to Shimeril, if all attack the west keep between Blood and Gorgrath.
Anyway, the NE Lords (Herath, Ithrorn, Whispers and Dreams) shall make turn point.
Of course, knowledge of the Waters of Life and Cups of Dreams is essential.

OK, I've tested this now properly an confirmed that the game plays like the original.

The original had a 28 army limit for armies loyal to the moonprince. Each lord can have two armies, warriors and riders. Thus the limit could be 14 lords. If all the lords only have one army ie: riders OR warriors then the limit would be 28 lords. So the combination of lords and armies makes the limit anywhere between 14 and 28.

It'd be nice if there was a 'standard' mode and a randomised mode for extra difficulty for vetern players. The randomised mode could shift locations of items or people. Perhaps even numbers of troops too.

I agree. Currently I see no reason for me to purchase the remake of Lords of Midnight.

It's a different genre, but I remember Resident Evil Director's Cut did it and it was well appreciated. They changed the zombie or weapon positions to freshen it up for those who had memorised everything. It wouldnt need to be big changes. The small optional random element I suggested would make a big difference. I'd even go so far as to say not to worry too much about it being not as balanced as the original, because it is there to be difficult and random anyway and only the veterns would touch that mode. Lots of random generation based games are appreciated for the variation in difficulty it can present (Dwarf Fortress, famously known for it at times, along with others). It could give nice "war stories" and players might really enjoy having a big challenge given to them. Alternatively if it was possible perhaps random with a "seed" code? That way you could have a random map, but still allow players to share or revisit if they couldn't beat it the first time? Again, it would be the characters and items - the movable elements I'd be thinking of randomising, so a great deal could remain the same and not need changing.

I still bought the new version and think it is worth while though. It works well on the modern format and the updates are nice touches. Had a lot of fun going back to it. :)

Once I have got Doomdark's Revenge out of the way, end of this year (hopefully) start of next... then I will take a look at adding in the difficulty modes that I intended adding. This will add things such as randomisation, impassable mountains, moving lords, etc...

I'm looking forward to that.
I shudder to think of how much time I spent on LoM and DD as kid. Now that I'm older I can see their flaws more clearly, especially in DD, but if those flaws were to be fixed, I may again be doomed to burning the midnight oil...