This is what is making the game interesting to play...at least it is for me. I love being boxed in, having to earn the right to expand your empire.

I'm aware of that and I've turned the density down already but there are still very strong monsters station close to my 1st settlement.

I decided to test something.  Set the overall AI for Easy and the monster density for Sparse.  Started up a new game, and found two dragons (one of which I'd never seen before; nice artwork) within twenty squares of my first city.  Now, I'm not saying this shouldn't happen--but I'd expect this to happen on Challenging or higher, which is my usual play setting.  Easy?  Really?

Yes, but you gain the souls of new players that languish in horror after facing your modified enemies, which you in turn feed to your boss and master, Don Cthullu.  Stardock is supposed to gain money based on offering a balanced product that draws in suc...potential customers.  Different matter, altogether.

Same thing here... I saw the AI settle a city next to an elemental in 0.983. Only to see it being cut loose from it's location and leasurely walking counter clockwise around the city to god knows where! I mean really?? I love this game, even in it's beta state, but that's some stupid monster behaviour....

Same thing here. monsters don`t attack AI towns near them, but travel 7-8 tiles to attack mine towns. And that`s monsters that town with double-triple upgraded walls cannot handle.

One time i build city near wild grounds, and ALL monsters including Dragons, Lords and pack of Elementals start to target my town - ignoring AI town from other side, that was closer to wilds. I managed to kill Dragon with 3 heroyes 6lvl 5lvl 5lvl, but it took like 20 Load games, all my resources, and i was 100 kingdom power against 280 of AI`s. (which i kill next anyway becose AI not using magick propertly i think).

Something wrong with this...

You are misunderstanding the game mechanics. The dragons does not make the game difficult or easy based on where they are. As long as you dont settle next to them, they will leave you alone. 

Me too, although the humies might make a better sport if some fliers was posted through they're training area about how to walk silently around dragon lairs, so they aren't as easy snacks, no dragon should have free snacks, they go lazy I tell you!

Sincerely
~ Kongdej

If another player settles near the dragons, the latter will start wandering.  And they won't necessarily attack the AI, as we both know, having played FE for a long time in beta on much harder levels.  I watched them last night go right for the jugular of my capitol in such a situation, bypassing the AI settlement.  Secondly, I'm suggesting that two dragons shouldn't be twenty squares distant from your capitol guarding the only fertile area within 60 squares of my first city, on Easy.  That suggests a degree of randomness in new game generation that makes a mockery of the idea of level choice.  And finally, of course you *should* have dragons, and others things that could snap even advanced stacks in half like a twig if the player isn't careful; but if you want to bring in new players to a game, putting them that close to any opening city and closing off access to growth on the Easy level probably isn't the best way to hold their interest and make them think it is a friendly product.  Just a thought.

Depends on who you talk to.

Usually you have to sneak around such hard creature spawns, and level up your sovereign on the weaker units, if your sovereign is weak in combat (say you picked one of the pre-made sovereigns), then I recommend training an early unit with spears (yes you have to research the spears tech, but they will help tremendously).

Run taxes on "None" until your first settlement reaches level 2, since the tax from one level 1 settlement is pointless and doesn't get you anywhere.

Get accustomed to what kind of monsters are easy to kill, most darklings come to mind, if the world is dangerous, just walk around and look for treasure caches, these might drop the all important armour for your sovereign, which in turn gives your sovereign the ability to kill bigger monsters.

I recommend play either "Lord Relias, Lord Markin, Warlord Verga, or Emperor Karavox, to start out with, these sovereigns all have moderate to strong starting items, and are relatively simple to start up with.
When you are more familiar with the basic weapons and armour, Lady Irane and Magnar is also solid choices... Don't ever play "Queen Procipinee (Porcupine)" since her basic startout options are terribad.

Also another notion is if you create a custom sovereign with the "Hardy", and "Mighty" traits, and equipping the "Short sword" that will also give a solid build to start off clearing monsters.

Sincerely
~ Kongdej

Proximity has nothing to do with monster attacks.

The exact mechanism is that there are two types of monsters. Wanderers are spawned from lairs and wander around attacking anything within a certain distance of a lair, they are usually weak. Guardians also spawn from lairs but don't move, unless they are placed under ZoC from a outpost or city. They can be really really strong even early game, like dragons.

The problem with this system is how random the unleashed guardians are.  The AI constantly unleashes guardians from lairs by building cities in stupid places and then they wander over and attack the player. Players can also do the same thing and build city in stupid places and the monster will just wander off. This not only leads to random dragons sacking your cities early game but also to unlimited pioneer spam, as monsters don't hinder expansion at all. In fact sometimes building outposts next to dragons just allows you to loot their lairs for free, not that it's hard to build outposts around monsters.

The lair system needs to be changed so that monsters are far less punitive, random, and actually hinder expansion. Either lairs need to just prevent players from settling and spreading ZoC near them, or Guardians need to make a beeline for the source of the ZoC that disturbed them. All the current monster system does is encourages spamming, limit the early phase of the game, and is hugely discouraging because it punishes players severely and randomly.