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.
With this I agree! LOVE IT. Set it to dense, in fact lol.
Now, not to invalidate OP concerns, because I am positive s/he's not alone and that is certainly a concern. But even on dense, I am able to fight my way out and establish my other settlements in decent time.
1. Depending on the mob and spread, sometimes I pair my sov and first champion together in a group, and other times they are seperate (hopefully with a wolf or sand golem from an item, or a summon, something! though some sovs do fine solo).
2. I try to scout the best I can, but I just plain commit to a plan at some point. Have to get the city down, or enough mobs killed to open the land, so I just make a plan and follow it. Yes, sometimes I should have gone north, I went south, but that is the fun of it.
3. Hate to say it, but sometimes letting the AI build their early noob cities and just taking them is best. Usually requires a strong starting position with high production, but it can be done. So much depends on your starting race. Like Resoln can summon a wolf right off, then if you have 1, especially 2 magic shards around, you now all of a sudden get 1-2 strong other mobs, even then make a spider after researching early magic. You can shred with that and the Sov and first champion.
4. KILL THOSE SPAWNS! The longer they stay there, the more they produce. You can pair up your sov and champ to be pretty safe. Also, the experience gained from this should raise your heroes high enough to become a focal point of the army, even if you don't go with an army early (and let's face it, that's not a very viable strat yet).
Hope that helps. Sorry if it doesn't pertain to your specific experience, because I don't know the full details of your 10 games.
Edit: Yes, I will admit that dragons are a bit dense at times =D But usually not that aggressive unless you disturb their immediate surroundings.