National troops and mages vs SC and High Magics

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How can this be a problem?

There is already a solution, mentioned earlier in the thread - playing a game with difficult research and fewer sites makes for a more "national" game.

If you want loads of high level magic, then expect it to take over. Either that or agree with everyone which spells none of you are going to use before the game starts, but I'd go with the low research and magic option if I were you.