That's a very great and detailed review with some very good feedback!
We are still working on improving the AI, a lot of the flaws you mentioned are in our backlog and will be addressed at some point, next patch will address a few of them mainly defending their homecastle and spending more of their gold (You are definitely not paranoid).
For the armies, we are still trying to improve them and your feedback is very valuable. The Dwarves are gonna get a end-game rework soon!
Cheers!