The design is simple and effective, but as it is the game is not playable.
The current ideal offensive strategy is to select player 1, WAIT 4-6 rounds (depending on how far away the flags are), train 1 troop, and use the accumulated moves to go all the way to the other player's base, done.
This can be easily countered by the ideal defensive strategy: train 1 unit AT base, increase unit HP just enough to counter the offensive strategy.
Any movement that does not result in unit getting closer to the enemy flag (including on death) is wasted. Given the unit/hp price, movement cost is prohibitively expensive. A better design is possibly to make movement limited but free, and make existing units cost upkeep every turn. Thus 1 unit @ 6hp has more health, and 2 units @ 3 hp each can attack more but cost more upkeep.