They're still pretty tough and hit hard comparing to standard units, but their main utility is supposed to be that Sheredyn can target either their own lands or vicinity of a Chosen with their active skills.

Now I'm not sure whether ability to just spam Chosen would be OP or not, but I do think that cap could get 2-3 more to get more use out of them.

i agree they are tough just not enough to warrant a cap of 4. i also dont think its fair that they are the only capped unit in the game. which feels bad seeing how its a faction unique unit that you only get to have 4 of. imo if 1 faction has a capped unit then all factions should have a capped unit or none should be capped. especially since they are adding the "encircling" feature which would make their high defence useless if you are outnumbered which again means imo they shouldnt be capped at all. especially since "they are the backbone"

Well, Sheredyn are also only faction with additional unit in their roster, so you could make a case of every faction having their fifth unit capped at 0.

Now that I think about it, I believe they could use system similar to what we had for system caps in ES2, with a high level Improvement for cities that expands Chosen cap by 1, so you could field more as your empire expands.

yeah that would atleast be better having caps increase as your empire expands even if its only by 1 or 2 every certain amount of cities or districts you have.