The AI seems a lot better to me than in Dom2. I think st.patrik is playing on normal difficulty level?
edit: "difficult" difficulty level.
I've played two quick games, and the first one I lost because the guys I was fighting against dominion-killed me!
I had a 6 dominion, a living prophet (though an imprisoned pretender), and a couple extra temples, too, so I was quite impressed. As for Kailasa being overpowered, I don't know... I'm stomping them as Marverni in my second game.
High morale troops are good for not being awed.