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Given how quickly dreadnoughts and T4 3+ units get exploded, this will look nice but probably fail to do anything. Anyways, it's what I'm thinking of trying:

Watch Commander [110 pts]:
=Chaplain w/Banebolts of Eryxia, Auspex [110 pts]

Ancient [125 pts]:
=Dreadnought w/TL-Lascannon, Heavy Flamer [125 pts]

Ancient [100 pts]:
=Dreadnought [100 pts]

Aquila Kill-Team [415 pts]:
=Librarian w/Terminator Armour, ML2, Force Axe [115 pts]
=Veterans [235 pts]
*Watch Sergeant w/Meltagun, Storm Shield
*Veteran w/Deathwatch Frag Cannon
*Veteran w/Heavy Thunder Hammer, Black Shield
*Veteran w/Deathwatch Shotgun
*Veteran w/Deathwatch Shotgun
*Drop Pod
=Terminator w/Assault Cannon, Chainfist [65 pts]

Some of this is non-changeable due to model construction and fluff, so my questions are:

How well do you think this would work?
How would you use this list?
Strengths/Weaknesses (besides Tau)?
Is there a better use for the 100 points the second Dreadnought takes up?

The problem as I see it is the kill team mixes stuff that's only useful in melee with a lot of good shooting that will be wasted in melee. I guess you would want to drop them near soft targets that can't kill you with shooting or beat you in assault. Hopefully your stormshield could soak up some hits and you'll do enough damage in two rounds of shooting to clean up when you charge.

There's a lot of anti-infantry firepower mixed with anti-tank. The frag cannon is good against both, but the shotguns and assault cannon don't really mesh with the meltagun. I assume you can't change the loadout because of the models, and GW does seem to be trying to market Deathwatch squads as the "jack of all trades" option. But I just don't see the benefit in paying so many points for mixed-wargear squads that aren't particularly good at anything.

I can think of better uses for the 100 points from the dreadnought, like adding two more frag cannon marines to the kill team and giving the term a melta or cyclone instead of the assault cannon. But that would require you to convert and/or buy extra bits.

I have no issue with acquiring more models for better loadouts. The KT is designed to work with allies really, and not bother with the chaplain or dreadnoughts. The idea is to have it ounch tanks. Chappie is really justbrhere to help get it all to 750.


Automatically Appended Next Post:
While I remember; the KT needed to fulfil multiple objectives in addition to the tanks.

More fun over value.