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I'd be curious how they handle the street-by-street fighting in Kyouto during the Ounin War.

I'd hate to disapoint you, but there won't be any "street-by-street fighting" in the game. Not really within the scope of a grand stategy game... :p
 
Having large professional standing armies is not really appropriate for this period. For that matter, it's not really appropriate for most of EU3.

Well, towards the end of the period you have battles like Sekigahara (~160.000) and sieges like that of Odawara (~100.000).