Rule 7.1 is kinda bad. It forces the people to camp more, instead of encouraging trying out different tactics. For example, imagine that you have full battle group and then you start clashing with the enemy. At some point you might have to sacrifice some companies in order to win the engagement by ordering them to charge while other companies hold flanks. Now, if those companies who charged, die, let's say 4 out of 6, your entire battle group would be considered dead, despite you taking care of enemy troops with 2 of your companies still alive and ready to kick ass.
I do have a lot of experience with this on EU_Commander. My suggestion is that you let the players to decide whether they want to lose some of the troops or all of them, meaning that the battle group should be considered dead only if it loses all the men. So the respawns could be done by the company, not the battle group. This way it is more dynamic and would allow people to think more about their moves. While at the same time, there wouldn't be that many campers.