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Most people I have seen talking about anything shop related attempt to amass as much money as they can before the first shop and than buy a unit, depending on the faction repeat that for the second shop and than spend the rest on the money on upgrades and events.
That being said:
If I start with Dreadknights from the undead nation I am always tempted to buy the lances and shield immediatly because it is INCREADIBLY difficult to replenish that particular unit. (1 model per rest instance unless you burn a level up on additional replenishment which makes it 2) - so anything that I can do to reuce losses on those is welcome.
Is it better than having a second unit of dread knights, a skeleton dragon for the vamp knight or something like that? Absolutly not ..assuming you can still level them 2 or 3 times before the final battle.
There is also the issue that units become more expensive to buy when you have a larger army already. I don't think event costs go up though.
Buying units late into the run isn't that great unless they can fix something you desperatly need to fix in your line up. No skill ups, no Attack ups, no additional wounds..nothing.
Early on all that potential is still on the table and the difference between leveled up and not is HUGE. (most range units are pretty terrible in the beginning but level ups make them scary, horses turn from nice to godly, bats which are rather terrible can turn into 4 wounds 4-5 models damage soakers who will replenish 2-3 units after each fight... )
So bottom line:
It depends.
General answer:
First 2 shops buy units, rest buys upgrades and spends on events.
I like the armour upgrades because you upgrade a very important stat for fairly cheap. And it contributes to almost every fight that unit gets into.
Weapons can be good, but does often change the role of that unit. The ones with extra charge power are a luxury upgrade for me, but worth it for the most valuable units.
Many of the banners are very situational. I personally like the mist one, since it's cheap and gives good value against ranged attacks.
leader upgrades are rarely worth it IMO. But many magic spells are great value for money, and magic power upgrades can make them exponentially better.
In the 2nd shop I build my team, which should get my new units enough battles to level up, 2 or 3 times before act 2 boss.
Upgrades is something I purchase at the 2nd of act 2 or in act 3, with some small exceptions.
Mounts gets upgraded so they get +1 def.
Hero's gets upgrades as I want my spellcasters to be able to support myself, and my fighters needs to be able to help their mount cleave through the ones they flank.
Elite units (cav knights for humans for example), get upgrades so they can cleave though the enemies easier. But most chaff don't get upgrades until way late. I might throw a banner of mist (+1 def against ranged), but that is it.
Then in act 2 or act 3, I get the combat upgrades they need, because at that point the only units worth buying would be art pieces, or more heros on flying mounts, and they cost 450-600 at this point.
Upgrades in general are better in late Act 2. By that time, it's unlikely you will be able to promote up any units your recruit, and unit costs have skyrocketed. However, those upgrades are still the same cost as they always were, and offer immediate benefits.
I tend to buy units in my first shop, save to spare to buy units in the second, and then think more on upgrades once I hit Act 2.
As a general rule you should try to aquire more units early on and then spent income on upgrades. The early you've bought unit, the more money it would earn in campaing, and more powerful by the means of XP it would become.
Generally I do not buy unit before final battle because it would be green.
Units which can be get for the part of income, unlike others, are good to aquire on late stages since you won't spent much money on them overall and yet they would fight in final battle.
Spells are also fairly cheap to upgrade for your mage unit.
With the better spells like Primal Rage or Radiant shield you get a big boost for winning the critical fights in each battle.
Divine blessing with the "all units" upgrade is also killer with the more ranged focused armies like the elves.