Good points all...
If quality is just the fight score, yes quantity trumps quality, because higher fight only gives you a 16% advantage 1:1, but if you're outnumbered 2:1 it swings the other way by 16%. Sounds like a losing proposition, but it's not that simple. It does bother me a bit thematically (I always thought, based on the books, an elf should be able to handle a squad of goblins, and men a few of them), but you can't deny the rules are well balanced for points, otherwise elves would never win. But you can still win with, say, elves vs goblins, for a variety of reasons.
When quantity breaks, they break hard. You will hardly lose elves or dwarves to attrition after breaking, while goblins and orcs can simply disappear in a turn or two. Boosts from horns and drums and special profile rules and standfast are hugely important and become tactical objectives. Destroy the drum, kill the shaman, get to the wraith before he can roll standfast...
More terrain helps. I see pictures of a lot of games where the board is open and lines approach and fight. IMHO, it's not very interesting, and not the way the game was designed to play. They mean it in the rules when they say cover 33 - 50% of the board in terrain. This creates pockets and bottlenecks where quality, backed by spears and pikes and banners, or a shielding wood elf with a spear, can get more dice into the fray. More dice means better odds of rolling a 6 (42% if you can get 3 dice), and a 6 auto-wins.
Then there are the heroes, and now that Transfix/Immobilize is nerfed slightly, and spear and pike support use the Fight of the supporter, there's more incentive to bring some expensive quality heroes back into the game. Not to mention that well-constructed all-hero armies can win.
And with the new monster rules, I'm sure Evil and Good monster armies are going to have a heyday. There's some quality trumping quantity...