Yeah, I think I may need to nerf peasant militia spawns a little bit. However, I think the nerf they need is in frequency, not in strength.
I'm strongly in favor of peasant militia spawned by excessive looting being a serious deterrent to further looting. Having them just be cannon fodder may be amusing, and may play into the narrative that peasants are pathetic little fools only worthwhile when led by nobles, but it doesn't make good gameplay.