i'd say a good way to balance tunneling would be to make destruction of the entrance equate to a tunnel collapse. while there would realistically be a chance to dig the tunnelers out, i think that would probably be too complicated to try and emulate in a game. the tunnel could be dissimilar to other buildings you can garrison in that units won't automatically bail out when it's nearly destroyed (the justification being that the tunnel is too difficult to escape from in a pinch like that compared to, say, a fortress) and, unlike other buildings, it could be vulnerable to regular soldiers as well as siege--the justification here would be that a soldier comes up to the tunnel and just goes to town on the entrance, smashing it with his sword or a field shovel or whatever he has on hand to trap the tunnelers within also, i think such a feature should be specifically labeled a Siege Tunnel, while other tunnels could be used for various purposes, namely scenario design--think a tunnel connecting two group of soldiers that the player controls but are separated by an impassable mountain range