No idea why the changes happened (I'm almost certain it caused Terror at some point as well? Or maybe I've finally gone mad?), but that 'dead if pushed back' change is a real deal-killer for the ST.
LRB's can be very successful- just look at Bloodbowl and Epic. The problem is you often get fractured rulesets- look again at Bloodbowl and Epic. A very strong and consistent community is needed to make these work, and although I'm sure Warmaster has the numbers there seems to be a lack of drive and organising centre. The French community may have what it takes, but everything they write is unsurprisingly French, so the spread of their ideas is a bit limited (not that I blame them- translating is a thankless job). I know some French members have posted rather awesome-looking stuff here, like Storm of Magic rules, but although I've downloaded it all my French is still lacking.
On the topic of the Chaos Hounds, one thing I like about Warmaster is the consistency between lists. Marauders have the same stats as High Elf Spearmen and many others, and are all 60pts. Similarly the basic archer profile and points are the same across armies. The only things to receive a break from these values are few and far between (Skaven Clanrats and Stormvermin are 5pts cheaper, but Skaven lack cavalry, High Elf generals are more expensive than usual, but they have excellent leadership and strong cavalry*). I think this is important in keeping the game balanced. What are the specific changes you've made to hounds and why exactly? (Curious, not trying to be negative)
*This change (it's different from the printed book) came not long after a published battle report where a 2000pt High Elf army defeated 2 allied 2000pt armies (ie. 4000pts) without breaking a sweat, using a gunline and strong cavalry hammer that swung back and forth across the front lines, often covering the entire board width in one turn.