@Marshall Mark,
Yes,you have the basic idea down in terms of REP and the command and control(and loss of it)works in RRtK. Let me adress your other questions…
Q:How are heroes, generals, wizards, etc represented and
handled in the rules ?
A:Generals are assumed to be present in a unit of your choice and give a bonus to combat for the unit. Depending on the number of troops involved there may also be sub commanders for an army. Heroes and wizards may or may not be available(if using the random army generation). They are represented by individual models and, in the case of Wizards, the model may represent a number of casters working in concert. Wizards are also assigned a unit in the army to act as body guard and must remain adjacent to the unit. In a campaign, your heroes may decide to leave your army for greener pastures if you are having a bad run of luck or don't show your appreciation for them.
Q:Are there any morale rules?
A:Certain things cause terror, other things have bonuses to resist fear or panic. There is no army morale "break point", but individual unit reactions to movement, shooting, combat and huge, horrible, monsters can have a ripple effect for good or ill.
Q:What sort of effects does magic have?
A:That depends on what you mean by "effect" and how you use it. There are multiple grades of both offensive and defensive magic. Spells can be opposed by enemy casters. Magic is a limited resource and the really good stuff will be spendy in terms of casting cost. When your casting well runs dry your wizards are pretty much very expensive militia.
Q:Are there rules for flying creatures ?
A:Yup,and given that the points formula is given in the rules, you can even "grow your own" flying critters. Flying things which also cause terror can perform a sort
of morale based strafing run…ouch. Beware of dragons and Nazgul on fell beasts.
Q:How many special rules for different weapons types are
there ?
A: Not many, The rules basically treat all bashy and stabby weapons the same. So, two units of identical REP and wearing the same armor will fight the same, even if one has spears and the other axes. Pikes are in their own category. Missile weapons are much the same. Bows and crossbows are in one range band and early gunpowder weapons are in another. Skirmishing missile troops all have the same range because of how they fight, not what they are using.
Q:Is there much of a rock-paper-scissors aspect to the game (so units have strengths and weaknesses and are better against some enemies than others) ?
A: Not as much as in some other games. Common sense still applies. Charging pikemen with cavalry is still a bad idea, softening up a target with missile fire before melee and hitting the enemy in a flank are still good ideas. The REP based reaction system makes it a bit harder to play rock- paper-scissors.
Q:What effect does terrain have ?
A:Terrain has an effect on movement and line of sight. It may also provide cover and/or make an area more defensible in hand to hand.
Q:Is there a section in the rulebook with set-up rules (including terrain placement, who sets up first, etc) ?
A:Yes, there are quite detailed rules for terrain placement and starting deployment of troops. Deployment is even determined, to a degree, by the regular tactics of an army so that a defensive, missile heavy, army will deploy differently than a more aggressive, melee focused, army.
Hope that helps. Feel free to PM me if you have other questions.
spies an interesting 'underground' gaming table.