I had some use for generals. I fought many battles at once, and advanced aggressively. Does the turn counter increase throughout the game, or reset per chapter? I think it goes ever upwards, because I don't think I played the last chapter for 33 turns.
Most of the time, though, I was very low on gold, pouring into units. I never used more than one general in a single turn, even though I'm rather bad at RTS.
I played somewhat recklessly on the strategy map and was not punished for it at all. (I was deliberate about the resources and locations I exposed to danger and the value of potential conquests, so not entirely reckless, but I was always expanding, hardly ever losing more ground than I gained.)
I don't think my generals gained any abilities during play. Or did they start out with less than 2 each?