Hashut's Blessing wrote:
The mention of the resplendence of riding beneath the Royal Standard of Rohan and marching beneath Halbarad's banner are in flavour text, not rules text. As said, I would allow it to be played as an Army Banner, but the rules don't actually say it is anywhere.
Well. As it is in the first paragraph of the rule about Army Banners, it's not quite pure flavour text, and still identifies those two banners as examples of army banners. I'll grant it doesnt say "the following are to be treated always as army banners"
However, we do get into a circular argument here looking at the rules... as we get to the situation that the RAW mean that those two banners *never* can be Army Banners, despite being listed as examples of such on page 60.
How????? I'll explain.
If the standard is identified as not being effectively a banner as the stat block doesnt mention it....
... And then the stat block also doesn't give a price cost to give that formation a banner.
Therefore that formation simply doesnt have a banner, unless The Royal Standard is made an Army Banner by the Fortune. (as already pointed out in this thread)
BUT p89 says under Banner of the Free Peoples "Choose one formation in your army that has a Banner Bearer. That Banner is now an army banner for the remainder of the game"
So if the Royal Standard isn't a banner, it can't be upgraded to be an Army Banner, and the Royal Standard can never be the Army Banner. Which as I mentioned above is clearly at odds with the description of it acting like such in the rules text.
Alright, all that is a bit specious
. Now,the rules make a deal out of units using equipment actually present on the model. At least by adding details like "the formation is armed with hand weapons regardless of the actual weapons on the model" a number of times. So having a Gamling with the banner, and saying, "actually that banner looking thing there.. well this game i havent spent the extra points so its not an army banner, or even a banner... but next game it will be. "just sounds plain daft
So, everyone agrees common sense should rule, and actually the RAW technically preclude the Royal Standard being an Army banner... the question is rather what is wrong?
1. GW forgot to add banner bearer to the stat block and should be added for 35 points? then for +50 it can be turned into an Army Banner? (this is the carziest as Gamling already has that standard for +50)
2. The Standard should be treated as a regular banner for the Formation in addition to its special rule, for the +50 points. It can then be upgraded with that Fortune etc etc. to army Banner.
3. The standard is in fact an Army Banner for Rohan with the particular strengths (and weaknesses) already discussed previously.
I guess most would favour (2). But I still think (3) is reasonable as Rohan don't have many 'special's' like magic or artillery.
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So when it's time for me to spend the money I want to spend it on models that (1) look good, (2) matche the theme of the army I am building and (3) are effective in the game. I can get two Companies of Militia and one Company of Bowmen ( 24 models ) for the price of ONE Company of Royal Knights ( 2 models ). If I was starting from scratch, the mandatory Heroes and RRG to make a full 6 Company formation of Royal Knights is going to cost about $180. I can get two Epic Heroes and about 15 Companies of plastic Infantry for that price. Or, as mentioned, 2 Nazgul, Gothmog, 2 boxes of Morannon Orc (full legal Formation size), pizza and beer and still have enough money left over for a Command Blister. 
I agree though, that I wouldn't take any of the all-metal units except for Khazad Guard (which is only because of the Balin's Guard box).
