Which one should I get? Is 3 really that much better than 2? Which game has better balance?

I would appreciate any advice.

Thanks!

HoMM3 is much more balanced, and the mechanics are much more refined compared to HoMM2. HoMM2 still retains a great deal of charm that other games in the series just haven't quite captured, but overall I'd consider HoMM3 to be the pinnacle of the series.

I find that to learn the basic gameplay and strategies, the second game is better as it has less elements to assimilate.

Otherwise both games are of equal value in my book. The third game has a better gameplay and balance, more of everything and more scenarios than its predecessor, but the second game's graphics, soundtrack and intangible and unequaled charm simply make up for every shortcoming it has compared to its successor.

Hehe... I appreciate the advice but I'm not sure you guys are making it any easier!

I take it that 3 has more content?

You say that 3 has better balance - how bad is the balance of 2? Lots of people really seem to like it so I suppose it can't be too bad...

Play both, but if you must chose play HoMM 3. It has better AI and better quest system.

Balance is only a problem in HoMM2 when playing one of the expansions that feature ghosts. Every unit killed by a ghost turns into a new ghost, which can produce invincible armies.

HoMM2 has a more amusing, quirky campaign. It's graphics are less refined yet full of character.

HoMM3 takes itself more seriously, is more refined, and is mechanically superior.

I truly love both games but if you must pick one (and you're sure you'll never buy another), go with HoMM3. It has more depth and is still popular with more fan made content. Also if multiplayer is your thing, you'll get more play with HoMM3.

Could I just not use the ghosts to avoid breaking the game? Or does the AI use them against the player?

I would really like to play both games eventually.

You can decide not to use the ghosts (as I did), but the AI may eventually end up with some, as there are actually recruitment sites for ghosts. :rolleyes
It's not big problem, though, but something that is nice to be aware of.

Gah! I am immobilized by indecision!

If I play 3 first will 2 feel like a letdown?

HoMM3 definitely has more content, both in terms of campaigns, standalone maps, and user-made maps. As for balance, Ghosts are the only thing completely broken in HoMM2, but there are plenty of other things that while not broken are still unbalanced. Ranged units are very overpowered, and combined with flying units having unlimited mobility makes standard ground units severely underpowered. The towns also aren't particularly balanced, especially in the late game, where Wizard in particular becomes a major powerhouse while the Knight and Barbarian towns have a very hard time keeping up with any of the other towns. It's not so bad when playing smaller maps, but on larger maps it often feels like the only options are to exploit the unbalanced aspects or purposefully gimp yourself. It's still fun, but it's also unbalanced. Hard to say, since I played 2 first. I can go back and play 2 even after spending hundreds of hours on 3 and still enjoy it immensely due to the charm that many people have mentioned, but I can't rule out nostalgia being an influence on my enjoyment of it.

As someone who played 3 first, it doesn't really feel like a letdown, it just feels different. Honestly the only things that bothered me with going backwards were interface-related, or the occasional "okay, apparently I can't do that in this one!" moment. But I wouldn't consider any of them to be stumbling blocks. It shouldn't take you long to get adjusted, and it's quite fun. (Given the choice, though, I'd say 3 is a better game.)

The short answer is get them both and play HoMM 2 first. Both are excellent games, enhanced by the amazing maps that have been created by the community. I am completely in awe of the time and effort put in by some of the map makers.

I wouldn't worry to much about ghosts in H2, in my experience they are seldom used by the AI so you can just ignore them. H2 may be a little unbalanced but that just adds replay value as you can switch to a more challenging faction when you have won a few times playing as a Wizard.

There are two sources of imbalance in the second game: ghosts and the imbalance between factions.

Ghosts can be a problem in randomly generated maps and the expansion's single scenarios, but are thankfully absent from the expansion's campaigns, not to mention all the original maps and campaigns.

As for the factions, Barbarian and Knight factions rule on short maps but crash and burn on every scenario lasting more than a month, while Sorceress, Warlock and Wizard stagger early on but turn into powerhouse given enough time and resources. Necromancers also need some time to amass their legion of skeletons and vampire lords, but once they do...

At least it's less broken than the first game, where acquiring a dragon was all you needed to obliterate all three opponents and their armies, which turned every scenarios into a meta-game of finding and stealing the Warlock's castle.

If it can help with your indecision, the third game has its own modding community, which is still active up to this day. And a four years in the making fan-made expansion boasting a tenth faction with brand new creatures, heroes and a host of artifacts, map locations and scenarios is scheduled to get released pretty soon. So, even more content for the third game.

I caved in and bought both games.

I am working my way through the Roland campaing in HoMM 2 - tons of fun!

Don't think of it as caving in, think of it as showing exceptional wisdom.