I originally recruited them as militia for a small region that could only support one militia unit but ran into monsters on the way home.
I realised that as a home guard member I usually encounter enemies with no missile weapons.. often alone.. M.I. are perfect for this - pick them off then beat them up. I can take this unit up against an undead horde, obliterate them and walk away with a few wounded men, 5% equipment damage, +5% morale and maybe +1 honour... and all for about 70 gold per week and the ridicule of my peers.
If you're not at risk of invasion (and if dictating unit types was not a horrible breach of IR) a home guard and militia comprised entirely of M.I. would be an interesting experiment.. if only they were not so unpredictable.