Okay, I thought, we're not fools either. I reached the Necropolis, threw all the orcs (except the cyclops) into the meat grinder – and got undead. I hired all the undead troops I had, upgraded them all, and, satisfied, went to Shahidia, picking up about 25 upgraded titans along the way (on whom, like on the undead, mind spells don't work). I barely managed to take this nasty little town, losing almost my entire army, as the enemy started casting divine retribution.
And then Alaric came... Luckily, I had about 50 cyclops left in the Necropolis. Taking them, along with about 100 mages, 200-300 golems, and a few titans (all I could afford), I easily defeated Alaric in his own castle.