It feels small too because of how many places are dotted in between, the next castle or town is just 5 seconds away; you're not "traveling" through anything long and there's no risk to it besides a couple clicks to the side dodging that 1k army moving at a snails pace. Sure, just traveling and waiting is horrible gameplay, because there's absolutely no content developed/planned for it. But something like TotalWar, those maps feel a heck a lot larger, though with just about the same amount of town/regions littered.
We have more grain/fish/horses from loot than needed, there's no penalty roaming inside enemy's regions (ie they don't really hunt you even if you play as a raider). Once you get even ~30 troops, bandits are a non-factor.
Showing a whole section of nothing on the map (south of Aserai) doesn't help much with that either.