The panic choice is reversed, yeah. You’d have to choose it to not panic, otherwise yeah your troops get demoralized. It’s the morale version of not getting injured.

The Glorious Battle stuff has additional text rules as well. Like, if you’re against an NPC, winning the battle depends on the NPC. “Size” (placeholder name, probably ends up being “might”) is sort of hit points as well as what gives you tokens to make choices. Some NPCs are beaten when you damage half their Size, some only when the NPC leader is defeated, some only when they’re all killed (zealots and crazies and whatnot).

If you’re fighting a PC, you both go ’til one of you concedes. Lost Size is hard to recover so just throwing your army into a meat grinder is not an awesome option.

Display Your Heroism is supposed to be an opportunity to gamble for more tokens and/or snipe a leader out of action. Right now you have to buy it but I think instead it’ll just be another thing that happens, maybe after the tokens get spent? Maybe before? Dunno.