Even with all the changes in the patch, mounted troops will be superior to unmounted troops. Your top stacks will all be mounted if you can afford it just because they can get around the map faster.Banning them from city fights places a real drawback to any type of mounted troop. Plus (OK this is the real concern!) they do look stupid fighting indoors.
Indeed, IF you can afford it. The game has to change so that putting your troops on mounts should be a concious strategic decision and the changes in the next patch will go in the right direction. I say lets see how it works out and if it is not enough they can add more things like increased wages for mounted troops or even increased damage of troops carrying spears against mounted units, two additions that seem very sensible both from a common sense and gameplay perspective.
I don't really see how banning them completely from city fights is a sensible approach. It will swing back from the excessive use of mounted units to almost no use of mounted units. We need a strategic balance of army composition, not a limitation. I also don't agree that they look stupid when fighting in a city, you don't fight indoors but in the streets, marketplace.