There is a change yes, and all creatures are afraid of all others to a certain extend. In the config each creature now has three fear settings:
Code:
; Wounded fear set to 101 will make creature escape from any combat other than
; protecting heart, or a combat with single creature of the same kind.
; This special value works the same way regardless of creature tendencies.
; Smaller value will make the creature escape if it has less than given percentage
; of health left (0-never escape, 100-escape even if no health is lost).
FearWounded = 101
; Fear of stronger creatures - how many times the enemy has to be stronger in order
; for the creature to escape. Value of 100 will make the creature fear an enemy with
; same strength, 200 will make it fear enemies which are twice as strong, etc.
; The proper range of this value is 100..30000 %.
FearStronger = 800
; The FearWounded and FearStronger values are used unmodified only when Flee tendency
; is enabled. If the keeper didn't turned on flee, FearWounded is divided and
; FearStronger is multiplied by the following value before they are used (0..100).
FearNoFleeFactor = 8
I really dislike the current implementation as well, as like mentioned a lot of creatures are now unwilling to fight battles they should win. The effect is a lot worse with the flee setting enabled.
For example if you are attacked by a single enemy giant and throw all your warlocks to kill him, an easy victory if they would fight, they will all run away. And worse still, they don't run in any particular direction and don't stop fleeing if the scary enemy is defeated. As this setting is based on 'strength' the magical creatures are especially fearful, and the slow-but-strong creatures like giants are especially scary.
I'm not sure it is still the same in the current build, but when I faced the avatar with the 'flee' setting on, even my level 10 dragons ran away from him.
Edit: I've checked the code, and actually perhaps the system isn't that bad. Having support from friendly creatures makes creatures less afraid. Still, that leaves two mayor issues in my book:- The Flee setting should have no effect on creature fear. The flee setting should only enable/disable creatures retreating on low health. In other words, the 'FearNoFleeFactor' should be 1 in all cases.
- Fear should not be based on 'Strength'. Right now a Dwarf is 2.5 times scarier than a Wizard.