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Yes, the first unit will be "goblins" – they are simply small orcs whose tusks haven't grown yet.
They will be modeled after gremlins.
Regarding the low level, I want to point out that an orc is a savage; he isn't taught how to fight, he just takes axes and goes to make a name for himself in battle. However, the dwarves of Ashan have berserkers, who have training arenas, and also customs – if I'm not mistaken, in the description of one city, it says that berserkers split stones with their bare hands! That's a level of strength!
The most accurate comparison for my orc would be a hobgoblin from Heroes 3, pumped up with steroids.