Oh yeah, Pegasus Knights are definitely flimsy, but as they level up, they get more and more dodge, and being able to attack from places enemies can't reach them makes them incredibly useful for sneak attacks. Of course, you could use Wyvern Knights in their place, but honestly, in FE7, they suck.

Anyway, just grabbed FE8: The Sacred Stones, so I'll be giving that a try in the next few days, proving my emulator stops the random resetting it's been doing lately =S