Well yeah, two Dimension Doors, settled in an empty town, and he's happy) My point is that your rules imply "control" over the opponent so that they don't break through strong guards with something like a Tazar! Since Tazar is level 20, he could easily take the Dragon Utopia; it's just a matter of saying he took it as a mage—how do you prove it?! My version excludes such initiatives.
And to prevent them from settling in an empty town, leave a single level 1 unit there.
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check saves or still strictly limit the level