I find the AI Ottomans do fine in the early period most of the time (1.07 no beta). Very rarely do I see them dismembered until the 18th century. I think that Candar and Teke outlasted the Turks in only two of my many dozens of campaigns. If Constantinople falls and Venice is busy with Austria and Hungary, the Turks do fine. Ak Koyunlu is a persistent nuisance, however.
With the betas it's a whole new ballgame, though. Revolt risk eats up precious ducats and the lack of census tax cripples the early economy. The new merchant rules make Turkish expansion into the Venetian CoT a real trial.
The problem for the Ottomans in 1.07 (no beta) isn't the early game, but the end game when uber-Austria begins chomping away. Vienna and her allies take every European province and many Asian ones. The Turks are usually ten-fifteen land techs behind, have to deal with rebels and rapacious Persians.