Hi @comissarmoody
don't know about Your experience with campaigns
the approach @Chris outlined above is very nice and works nice, since going along with RPG principles
we (we being the people with whom I used to play) have played campaigns in this manners for many Years, and from what I can judge as a "user" of T&T by now is that these rules should be ideally suited to such an approach
there is however a "dark side" to this approach, depending of course on the size of the campaign - if You stay with a skirmish level of forces, I would see no problem.
Fighting campaigns on a bigger level however used to cause a lot of account work, with keeping track of unit numbers, point costs, experience levels etc.
this is not a drawback as such, but You have to keep it in mind
the other spectrum of campaigning as far as units are concerned (characters stay with the same approach, since it is the fun of it) would be to create army lists and simulate the experience of Your army and the evolution of Your "empire" through the availability of more experienced units and elaborate technology or the restriction of these in the case of poor campaign performance respectively.
this saves You the accountant work and also discussions with other players, since You do not have to reveal the composition of Your army and can agree on general army list terms.
another experience I had with @Chris approach is when we played an elaborate Mighty Empires campaign for 2 years, is that if You take records of the evolution of Your empire (like in Axis&Allies rules eg), players tend to concentrate on this and to preserve their armies, thus resulting in fewer actual battles (No, @Chris did not mention this, but it would be a logical consequence since You start keeping track of points costs for which You have to pay, etc)
whichever approach You choose, You should keep in mind on what You want to focus on, actual battles or the campaign set - both approaches worked fine for us
in case You experienced this already, sorry for carrying coals to newcastle

I just wanted to offer the other side of the campaign spectrum
maybe others could be interested as well