It's a combination of factors, I've tested them further, and the lack of villages, bad output of products/produces (most of their villages only make fur, which is garbage for the AI economy, it's only good for players playing monopoly, they lack food, they have no horse villages, and they lack both mines and hardwood, making workshops in Sturgia suck balls), and starting with nerfed prosperity makes them the weakest faction in the game from day 1. They never have time or means to recover. Meanwhile, Battania (which seems to be the favorite pet of TW) basically gets 4 villages per town, decent starting prosperity, and are geographically protected, so they often obliterate western part of Sturgia with the "help" of Vlandia, while the eastern part gets obliterated by Khuzait. I've seen this happen not 1 playthrough, but 8 out of 10, that means something...