The impenetrable fog of war..

[Embis]

Playing with fog of war I see my opponent faces me with "xxx" troops. 
So this might be 100 troops or it might be 999  troops.

"Caruthers, How many troops are occupying that wood ?"
"Well  sir, I can reliably and confidently report that its either a company or its a regiment."
"Thank you Carruthers. then our attack is either going to be a complete success or a total disaster"

Is my recon so poor that they can't tell whether there are about a hundred troops in that wood or about a thousand? 

Why does fog of war in PzC, in all cases, report the enemy strength so roughly? I know there are plenty of cases in history where intelligence reports have been wildly inaccurate,  and in some situations there might be good reasons for uncertainty, but as a general rule isn't intel a little more precise than Panzer Campaigns might have us believe? 

Wouldn't it be more realistic to have, in most situations, an estimate that was bracketed a little more closely to the actual figure?