Tested it myself and it does indeed work in-game as a doodad prop.
This is for all of you sadistic people out there that need decorations of people cut in half.
Some of you might even think it's as tasty as the chicken leg model I made previously.
You have my permission to edit this model, but do not take credit for your version!
To make a second variation:
Open the model in http://www.hiveworkshop.com/forums/tools-560/war3-model-editor-62876/ and open up the MPQ browser. Open up the war3.mpq. Go to Units/Critters/VillagerMan. The VillagerMan.blp texture in this folder fits all of my villager piece models. The Units/Critters/VillagerMan1/VillagerMan1.blp texture also fits all of my villager piece models. To change the texture, right click this .bllp file and click Use as Texture.
Then go to the Materials list and find which material uses the VillagerMan texture and change it to use the VillagerMan1 texture (or vise versa). Then remove the other villager texture from the texture list, as it is unused, and it takes up uneeded file size.
You're done!
I've done this myself and it takes quite literally 15 seconds.
Update 9/05/12
--Re-uploaded the model. After seeing many of hiveworkshop's greatest resource developers leave, I decided to re-submit my resources after them being gone for over a year. I shouldn't have let my pride cause me to take my resources down so long ago. Anyway, I hope some people find use in this.
Keywords:
villager, half, top, piece, chunk, blood, gore, prop, dead, death, corpse