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It's free unit XP and completely risk-free. It's not like players are so hard up for points they can't devote the three required to max out the benefit.
I vaguely recall so. Back then Heroes had a blue skill tree, just like Lords and Training was far along the tree in those days. Now you can pick and choose of course. I never wanted to put that many skill points in there. It would take 8 skill points to level up a skill in the second part and that is way too much for Training! Better to spend 3 skill points for 50 or so XP. (My Gunnery Wight is doling out 55 per turn right now.)
It's not that Training is useless, but more that there is something in game that is easier and 10 times more efficient than training is.
So as a result, spending points in training feels heavily suboptimal. It's not bad per se. Just, the alternative is far too good to ignore it.
You got Lord traits, Commandments, resource buildings, landmarks and buildings, events and mission rewards, followers and maybe something I forgot. They typically give out chevrons at recruitment. Stacking these is a heck of a lot better than Training, but its not an either/or question. On some factions it can be hard to get those + X levels recruitment bonuses. Chaos factions come to mind. Those kind of factions can benefit from Training but we should not really make it out to be the only thing at play. Like I said, use all advantages avaiable, even small ones.
So yeah in vanilla it's not too useful unless combined with other things like Vlad's skill or pirate XP gain from ship buildings.