[thejeff]

My general feeling is that the AI is exploitable even on impossible.

It can't deal with SCs or uber-bless troops. Using an SC nation, a good SC pretender, or a bless rush I'll slaughter the AI.
If I try to rely on regular troops and mages, especially on a crowded map, I wind up in the same situation: Getting swamped by hordes from all sides.

So that's my handicap challenge: Crowded map and beat the AI at it's own game. No uber-bless, SC pretender or recruitable SCs.