Tizz Knightstar, eh? Well you stand a lot better chance of fighting somebody than my warrior-based tizzstars do

However I think the banner of frenzy is a mistake on these boys, as it gives the enemy supreme ease to divert you off into woods or a corner, or more than likely turn your flank and get his own uber-unit in there against 1-2 knights (or the lord if he rides a flank and is challenged out). I dunno, I think the downsides are too huge to justify the upsides, which a fatty block with lord +
BSB doesn't totally need.
Let me toss up a tweak and talk about the changes, aye?
L: Lord -
MoT, runesword, armor of morrslieb, favor, musk, shield, steed = 364
H: Sorcerer -
MoT, golden eye, dispel scroll, roar, disc = 195
H: Exalted -
MoT,
BSB, collar, flail, shield = 179
C: 5 Horsemen - musician, flails / t.axes, light armor = 86
C: 5 Horsemen - musician, flails / t.axes, light armor = 86
C: 5 Horsemen - musician, flails / t.axes, light armor = 86
C: 5 Warhounds = 30
C: 5 Warhounds = 30
S: 8 Knights -
MoT, blasted standard, full command = 430
S: Chariot = 120
S: Chariot = 120
R: Giant = 225
R: Hellcannon = 205
--------
2156
Lord > Unchanged, hope he works out for you. I too have come to the conclusion that the r-sword is probably the best weapon, and will selective challenging you should be able to put him up against non-magic weapon wielders.
Sorc > I agree with you, I like my scroll caddy to do something. However I also like my march-blocking, two-die flickering, roaring, war machine pestering disc sorcerer to survive as well. Golden eye > second scroll
IMO, particularly against enemies without magic
Exalted > Pretty certain that magic banners count as magic items, which means no Fury. However with the banner of rage drop you can move blasted to the unit itself, letting the
BSB take some gear. Collar is always nice on a Tizz dude, and gives you that
MR(2) too.
Horsemen > I agree with Karon, make these guys useful. I would probably suggest flails, because with the knightstar attracting so much attention you want to be able to capitalize on exposed flanks or clear out enemy chaff reliably.
Warhounds > 10 is far too large, you want them small and disposable. 2x 5 is standard and delicious.
Knights > Simply dropping the frenzy banner and picking up the ward banner. I think the larger size will be useful for maintaining unit strength and weathering fire (and if flanked), as well as look better on the table.
Chariots, Giant > I want to mark these guys pretty badly, but we'll get to that
Hellcannon >
FTW So 94 points left, eh? One option is to buy a 4th horsemen unit (2x flails, 2x t.axes maybe?) and then fritter the extra points away, but one I like that injects even more modeling & theme in:
MoT for chariots & giant (+60), 3rd unit of hounds (+30). Extra tzeentchian, and I also am a believer in
MoT on a giant, gives you a shot at stopping all the fire going into him

Likewise the chariots, doomed to be pin-cushioned.
- Salvage
EDIT: I went to lunch whilst writing this, so just saw your post. Good call on puppies & horsemen, and because there are no plastic chaos chariots I too have been using 3x drogres instead of 2x chariots. Not having a lot of luck though