How do you deal with the AI's assumption that any player without a lot of units (regardless of quality) is ripe for the picking?
Once defense is fully fleshed out, the devs can add a power rating to defense structures. That means your faction power will go up by building a good defense. This is a fine line though. I would like Faction power to look the same as defense where it is split into three categories:
Soldier Strength
Here you would see the overall power of the faction's army, Sov, heroes, and monsters.
Economy
Here you would see the overall power of the faction's production, research, technology, gildar, and wealth.
Defense
Here you would see the overall power of the faction's defensive structures, territory seclusion, and win/loss ratio from battles.
Those three numbers would be added up to make the total faction power. This would give the AI essentially a perfect assessment of how powerful or vulnerable a faction is. This is essentially the same as everything a human looks at.
Knowing that this will never make it into the current game, I will save it for the expansion idea list. The hardest thing to code would be territory seclusion. This is a huge factor in one's ability to defend. I am sure Frogboy can think of a way to do it, but I am no Frogboy.