I like diplomacy. It is nice when you have some common units like pirates on islands. You are bound to lose some every now and then and diplomacy gets your army filled in next fight. It is also nice when you use some hard to replace units that are quite common foes like evil beholders or inquisitors. For more efficiency you can use maxed scouting, check how many of same unit enemy has and split 5% of that to reserve.
But it is fairly expensive skill so I don't see much use to take more than 1 point.
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