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Regarding the second hero, I understand now... :) I use him, but usually not at the very beginning of the game.
I take combat units for Kent, as they are more resilient, and such strong units need to be protected.
I only sell artifacts to the Orcs if they are useless for them. For the others, I only sell paired artifacts or if there is a better artifact to equip on the hero in that slot.
I almost always take Machinism if it appears.
I upgrade Goblins if I need +1 city level and don't have enough money for anything else.
P.S. Haggeesh is my favorite hero.