Yes, these game settings do change the usual balance of power, and reduce Ashdod from impossibly overpowered to just overpowered. Even with BL's help, it was a close thing, and I was only able to win against his large sacred army by throwing in all my capital only mages, a dozen or two F3 mages, and then getting very, very lucky with the army scripting. And if he had ever reached Earthquake, or had started spitting out fire resistant Adons with 30+ armor & regen & reinvig, it would have been all over for me.
Anyway, good game Squirreloid. Sorry if I'm too anti-Ashdod, I've started next to them one to many times.
As to the rest of the map, yes, Abysia is enjoying it's moment in the sun. At least we are in the North. I expect things to change though once we start seeing more battlefield enchantments by the other players. You can stick a fork in me once the first Mass Enslave comes out.

Like our mages, our nation is powerful but tends to die young. Personally, my money is on C'tis, but we will see.