Yes Talon438, you are right. Units should have the ability to surender. This way, u can avoid less war discontent from your civ. In addition, I can think of a Surender Agreement in Diplomacy between nations. If a civ suffer heavy lostes of combat units they can offer to surrender or maybe from your civ too. In return, u can confiscate up to 8 of their combat units depending on how many units that the surrendered civ have. Also the surrendered civ must remain cease-fire with your civ for at lease 10 turns.
During that time that nation cannot build combat unit(including Defence once). Perhaps, this feature can make the game more realistic.
[This message has been edited by leonli316 (edited March 05, 2001).]