In a recent battle in Itaufield, there was a 522 peasant mob, rated at 1164 CS. They faced off against about 800 Astrum soldiers.
The mob hit for 248 damage, taking down 10 Astrum soldiers. 401 of the mob were killed by 8600 damage.
So they are better than they were, but still not a huge threat to a large military force. Which is what they are supposed to be. You will take damage against them, and they will wear you down. If a defending army were to come in and attempt to drive out the invaders in combination with the peasant mod, then they could potentially swing the balance of the battle.
We may find that they still need a *little* bit more punch, though. The low CS/man for the mobs, combined with the spreading out of hits with the new combat system tends to really dilute their hitting power.
