I found an issue were I was attacking the Dragon looking guy's capital. He had enough units to defend it, but he was so focused on attacking this monster city that he left his capital wide open for attack. I literally would watch a new unit be created and then march off to attack that monster city while I had his capital nearly surrounded. I read in one of the posts that the A.I. received some tweaks. I hope this issue was addressed. I suppose there could have been many AI tweaks since this is the IGN beta build.
Anyways I took the capital and am very pleased that the rest of his empire turned neutral. Thumbs up for that.
The new patch seems to have solved the AI not defending it's Capital. I attacked King Rratt again in a new game. This time he massed troops between me and his Capital, not to mention attacked my troops with spells. Once my attacked failed he launched a counterattack; although, I successfully repelled his attack. Right now it's kind of a stalemate. This is a big improvement. He will still die, cause he is a dirty rat. King Rratt still does some boneheaded moves, like trying to move settlers through my lines. I almost feel bad as I riddle their bodies with arrows.