Well, everything seems pretty good overall. You'll have to fight hard for each piece of land, but that's normal for a map of size M.
It will take a while to build up an army strong enough to break through into the neighbor's territory.
And by the way, there's no point in killing two powerful dragons for just 5 sorcerers. At least 10 would make sense.
Overall, it's very strange; the AI seems to be acting very foolishly, and you can win in less than 30 days with 200% certainty. Maybe it considers 500 peasants to be a strong force and doesn't venture out for a long time?