OK. This has been going on for a while from other folks' reports, but I have finally proven it for myself.
The Dead faction is pretty much useless to itself as an AI player.
For two games I put the dead in. I was playing with a total of 7 players. 4 empire and 3 kingdoms. I just put the Dead in as a balance tipper to make it harder for myself as a kingdom player.
They just don't expand!! What is actually going on here? The weird thing is that on the first game they were at war with a couple other players and I found it odd that they were surviving. I got into a bad position and lost my last city so I thought I'd take theirs. Turns out they had a truckload of units stationed in the city. Just sitting there all garrisoned. I couldn't take the city.
They could have taken the Tarth city to the south of them with no issue but they just sat there. What exactly is holding them up? I thought the Loa in SOTS2 was the most troubled AI faction in any 4x game I saw because they had problems using their unique morphing ability, but The Dead takes the cake. At least the Loa will expand even if they don't use the most efficient methods for doing so.