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So playing a mech shooty list for the first time in forever, I realized the absolute power of mech to completely bone an assault army:

Hurray, you assaulted my transports, managed to roll the 4+ or 6+ to hit and get through the damage chart to kill my vehicle. My squad inside passes it's pinning test, now I shoot you, and you die.

I was wondering, if we made it so that after assaulting and killing a vehicle, the assaulting player would have the option of ending the assault phase locked in CC with the embarked squad? Could it nerf down transports somewhat and give assault armies a bump that looks like it could be needed, or am I over-reacting to mech > assault lists?

the problem is htere isn't much of a downside if any to being in the vehicle i agree, but this will not be changed much if any for one simple reason... vehicle models cost more money than troops. the more transports you buy the more money GW makes that is why it is so advantageous to get more dollas pounds ruples or yen

You're overreacting. If anything it's pretty easy to surround a transport and kill everyone in side.