I think this formation would be strengthened, if only slightly, if the enchantress was right next to the cleric. It would do a number of things such as: block off cleric LOS, lw would better protect chanty from scouts, and anywhere she went, she would be in bw range.

I understand this would mean cutting some of her defensive range off, but this can be pretty valuable in the area of conserving turns that would otherwise be used to protect her. Nice formation.

I considered this but the chanty is meant to be used aggressively branching out in this form and 1 extra tile can and often does make a whole lot of difference.

Any scout in range to shoot cleric from that side will also be in range to be frozen by the enchantress next turn and the cleric can either heal or be barriered depending on whether there is any other immediate threat in range.

For those very concerned about blocking that LOS path to the cleric however could move the barrier ward to the space between the chanty and the cleric sacrificing some range on one flank but adding to the range of the other.

You are mostly correct. Just for accuracy and completeness I would like to add that even if the enchantress was next to the cleric, a scout (on the flank generally) will still be in range of paralysis because the chanty has a range of 5, and a scout has 6 but is aiming for one tile further. Therefore you could still paralyze and offending scout if it attacked your cleric. Again, good form, I see why you have her there.

The problem with 2-ward dropless forms is the lack of flexibility. Say I rushed with merely 2 knights and a scout. You would close up your flank to protect the dmw and chanty by moving your knights. Meanwhile my scout would snipe at the chanty, hidden behind my knights. Then I would advance my dmw / pyro(s) to threaten your BW.

Of course, I'd be happy to prove this, but I am a little rusty in dropless games xD

Its decent. Witch/chanty are both to open to being sniped at by scout.