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Especially if you're playing as Dungeon and there's a portal. External dwellings come in different varieties. An external dwelling of Wyverns is garbage, but an external dwelling of Hydras or even Gorgons is awesome!
Of course, an external dwelling of Elves for week 4 is no longer a unit. But in week 1, this external dwelling helps develop a fast tempo and make the game. It's just that games often end even by week 2...