I'll preface this by saying that I have already developed a solution to this nagging issue. All I'm trying to do is get opinions.
In the full campaign, in Missouri, after the massacre in Saint Louis, the rebels are given a small force in Fayetteville. This force, which is supposed to represent the Missouri State Guard (https://en.wikipedia.org/wiki/Missouri_State_Guard), is composed of some rifled artillery and some militia. None of the militia has a home area of Missouri. Instead, the militia are either Arkansas or, bewilderingly, Texas home area. However, if you hold requisite territory when the force pool changes, you can raise Missouri militia with Missouri-specific home area (*bonus* for fighting in Missouri).
The Missouri State Guard forces, authorized and recognized by the pre-war state of Missouri, are penalized for fighting in Missouri. Opinions?
In a similar vein but different area: Virginia. At the beginning of the full campaign Virginia is still (historically) one large state, encompassing what would eventually become West Virginia. Since the game assumes that West Virginia will *always* become a separate state, it's already divvied up. As a result, Virginia militia units are penalized from the start for fighting in (historic) Virginia. Virginia militia are persona non grata in Harper's Ferry, VIRGINIA, and that early Winchester militia unit will suffer penalties for residing there.
Is this fine with you? Is this the way things should be to most accurately, or as accurately as possible within the limits of the game, represent the situation on the ground?
jm