Tony: Yes, Tom said he didn't want mobile militia, the ability to move militia. This is not moving militia, this is just extending an ability that is already in the game for generals.
As for it being exploited, I don't know. I also prefer option two which would only allow a region lord to pick up militia from his region, so he couldn't be passing them around. If it was kept like the general's ability the region lord could only pickup a unit every few days I believe it is? As De-Legro pointed out militia slowly lose troops over time which would also hinder any sort of exploit someone might try to find.
