Just re-stating what was stated above -- Massive Balance Problems? What is your basis for that? I am not arguing, I just want to understand.
Well, first off, there's the exploit where undead have no repercussion for having negative infinity food. I think you can see how that's pretty gamebreaking.
Random things from caravans and other lootable areas. Usually, you get a bit of gold. Occasionally, you get a random teir 2 unit. It's possible (and it's happened to me) to get two or more tier two units before turn five, and then seriously consider conquering neighboring capitols.
Next, some of the resources like temples, dwarven settlements, and the occasional bit of overland neveril or adamantium can give one side a massive advantage over another. Or just a lucky spot; human spawning with an area where one town can reach a pile of gems and two gold mines (it's happened to me before).
Spell access is entirely random, and some spells are way, way more powerful than others; vampire weapon, prosperity, invisibility, water walking (which is also broken, currently). If you ever get access to healing, or damage spells. Even things like counterspell and enchantment dispells, there's no guarentee you'll get either before the extremely late game, and that's just utility.
The random positioning can really harm you, too. I've spawned into positions where my capitol only had 6 buildable spaces before it hit size 10, which was a pretty massive handicap. I've spawned in places that jam me straight up between mountains and an enemy capitol, which is currently pretty unconquerable before turn 10. I've spawned in places where my capitol can immediately come under attack by GFE's, Ogres, and other high level monsters.
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All this, and probably more people can think of. Now, in a single player game, all this is fun. It's like a roguelike. Sometimes you can stomp around with superweapons early on, sometimes you're starved out until the extreme lategame or start with a massive handicap. Sometimes you get some really powerful things, and are locked away from some basic utility and have to make do without it. It's interesting, and dynamic, and tremendously unfair if I'm trying to win a game of skill against another player.