This was my check-in this afternoon of what I did in the past 24 hours to give you an idea of how fast progress can be. 
And this is just me and I'm just one person out of 19 full time people (not including shared Stardock resources like QA and testing and such) working on the game right now.
Brad (12:00 PM)
+ AI designs better units
+ Sovereign more aggressive at goodie hut finding
+ AI now makes use of external resources
+ Bandits: Brigands and other thugs are now spawned into the world (this will eventually be event driven so that different games have different environmental bad guys)
+ Bandits: Interacts with player
+ Bandits: Will target for destruction undefended cities eventually.
+ The technology breakthru window doesn't default to continuing down the same path anymore.
+ AI Difficulty levels hooked up
+ First attempt to get the events to play tones in
+ Made changs to CanOwnCity() such that Monsters can destroy cities
+ Treasures can now have their own distinct sounds when found
+ Rewrote ::FindRandomGoodieHutTypeByTerrain() to have it take into account how rare the goodie hut is and make sure it is following the world spawn rating rules.
+ Hooked up Influence Ability. Every 100 points of Influence will increase the max radius of a player's zone of control by a full tile. By very careful with this.
+ MessageBoxWnd no longer hard coded to that treasure found sound.
+ Message Window can now play sounds when brought up.
+ Lots of changews to MobileObject.cpp to allow monsters to be monsters. BETA TESTERS: Be on the look out for stuck turns.
+ CPlayer::SetABility() added (seriously, we didn't have this)!
+ Beginnings of the AI designing units for the human player put in.
- AI will try to design a unit every time they go up a level on the warfare/combat tree. If it is better than any existing unit the player can build, it will add it to their list. In theory.
+ By default, spawn ratings on quests are now -1
+ Fixed bug where quests were hard coded to 1.
+ Events should be playing sounds
+ Tactical Unit morale system rewritten
+ If a monster manages to "conquer" a city it will destroy it (they're monsters afterall)
+ Changed the way Goodie Hut spawns work such that the higher level goodie huts will mainly spawn around the player who triggered the spawn rather than spamming it randomly around the map. In addition, players who do go up a goodie hut level will still be able to get some goodie huts placed near them.
+ First balance attempt to try to make the monster upgrading not go up so fast
+ Updated CWorld:
laceRandomGoodieHuts() so that we can now optionally specify a player we want them to be spawned near
+ Tactical Maps for all terrain types created (13 new maps)
+ Fixed Core Accessories to work with new tech trees
+ Sound effects added to many treasures found in goodie huts
+ Lots of new items added (sick of healing nectar)
+ Sand Golem nerfed
+ Fixed typos where people were spelling sovereign as "soveriegn" (I before E except after C)
+ Wild Game now extremely rare (will have to have it spawn only near hunters in the future)
+ Tried, but failed, to get the lost library to have a different tactical map icon than the ancient temple Not sure why they still look the same but they are using different fiels now
+ Gave bandidts and other humanoid monsters intelligence of 10.
+ Started crated "gang" monster groups
+ Players now start out knowing certain spells. In addition, each spell book now has some spells that a caster knows by having that spell book.
+ Veteran troops can now be trained by Amarians
+ The default Pioneer is now unarmed (and cheaper)
+ Brought some of the Imperial improvement costs in line with the Kingdom equivalents
+ TONS of new Quest items to get
+ Started adding template quests that are easily modded to create other quests
+ Lots of new quest destinations
+ THE MASTER QUEST IS IN!
+ Dave Stern's writing in the Master Quest