Here are the settings for my custom faction (just for fun).
I wanted a magic centric race with quick power. I can scoot out and get as many shards as I can reach without monsters attacking my, and I get free powerful units from binding.
Hero Name: RAISTLIN
Strengths:
Adepts (shard harvesting)
Binding (incredibly powerful Cyndrum Demons for free!! How else can you get 9 units in one group so early in the game?!)
Master Scouts (no monsters attacking me)
Scholars (research bonus)
Weaknesses:
No Armor (I can buy it from friendly factions anyways)
No Ranged Weapons (not very powerful anyways)
Abilities:
Amarian Blood (for shard bonuses)
Brilliant (for magic bonuses)
Attunement (extra mana)
Wealthy (1000 g)
Natural Leader (100% discount on champions (offsets Cruel))
Cruel: (+1 attack +50% champion cost) (listed under abilities but its a selected weakness)