After finishing my first game on Large, Epic, Challenging (I'm a wuss, I know), (also note I was using the common mods like enhanced spells, artifacts, creatures, quests, etc.) I found several interesting things:
1. In game setup I had set up 7 opponents, all on Challenging. I encountered only two of those opponents on the map. The first was Tarth (predictably) with 5 cities, and a moderate amount of tough stacked units. The second was Irena or somesuch, with a 1 square city, and several progeny. The city had never been built out. Of the other 5, nothing was ever seen. My guess, given that I had run into damaged monster stacks, is that roaming monsters had nommed the AI opponents, who may have been in the 1 city no resources trap as has been noted earlier. By the time I encountered Tarth 400+ turns in, I had figured out the goldmaking technique, and I was experimenting with tech and arcane research, and hopelessly outclassed him. I was limited only by the amount of gold I could use to equip my plethora of heroes. In short, AI was pretty helpless against even itself.
2. Speed is fun. Moving 2 squares is seriously dull, less fun to travel through a forest.
3. Mana. I'm torn on the one hand as to how slow mana is to get, but on the other hand the point is not to have armies of platemages.
4. Food is currency. Got this one off the forums, very good tip.
5. Brown world. While it is realistic by storyline, I suppose, it does feel dead. I thought of an interesting solution though, and one that would turn the tables on the wily player:
This game has a list of terraforming spells such as I have not seen since populous. If the point of the channeler sovereign is to bring the world back into balance, why not have that world still be actively shaped and devastated using random terraforming effects on unclaimed territory? That your sovereign's influence by casting a "stability" spell on a newly founded city will cause it's influence to calm the land. You could use a resource gained through questing or somesuch to do so. This may also be a mechanism to generate new resources, etc.
6. Equipment. With all the talk of gold being the only resource needed to secure hero equipment, I do agree that once you hit metal armor/weapons it should cost resources.
7. So many heroes... In this game, I had a huge number of heroes. Once they were equipped, the only variation was in what stats I put points this level. I didn't really care what special abilities they had, and they were pretty much disposable. AoW pretty much spoiled me on hero customization and abilities.
8. Resources. Very thin on the ground compared to other games in the genre. While it was nice not to have to have an army of workers terraforming every tile, I pretty much dispensed with the strategic locating of cities and spammed as many as I could at proper distances. When a resource was available, especially food, I would found a city, but otherwise each little 5 person settlement was valuable for its cumulative 30% trade bonus.
In conclusion, I like where this game is headed, but like good stew it needs some serious spicing and better gravy to hold it together.