Finalgenesis
Yes, you will run out of gold very fast, much faster than you expect it. And, as I said, words and guides are good on paper and if you manage to make a good and efficient killing machine of your generated chaff, I'll say "WOW!". Seriously, they're absolute crap, especially for LA where armor is so high. If they manage to do 1hp damage each before they die, that'll be great.
Research really turns the tides for R'lyeh. Alteration spells convert this chaff into decent troops but you won't live long enough to see it in action. Or maybe you will live... With 10 provinces, 5000 pop total and 150 research per turn by turn 30. That makes little difference
The difference between Ermor and R'lyeh is that Ermor needs little to no money at all and thus can spam castles and temples, recruit mercs, etc. R'lyeh, OTOH, needs money for EVERYTHING (including the chaff you have to pay for, remember it. And you will be crying when you realize that you have 2000 mad tritons eating 200 gold each turn that you have absolutely no way to use and absolutely no way to get rid of. Well, maybe make them starve, but that's tricky and problematic as well)
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I get the impression that shifting to void specter and other summons is a must later in the game.
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Are you serious? With 35% sites (LA standard) and 15 water provinces you'll have about 8S per turn unless you're very lucky (or very unlucky). Void spectre costs 25, IIRC. What are you talking about?