I think the game would work better promoting expansion anyway though. The game gives you a ton of resources to make expansions, unless you're fond of wasting action points. The game encourages mass chaos, which you can't have without a lot of production of resources and military. In fact, if you don't cause mass chaos, you automatically lose, which means that on higher levels you NEED to expand many times to actually cause the chaos you need to cause. The thing is, sure it's a strategy that you will often want to implement, but what do you do with those expansions? If you just let them die, I mean, I guess that kind of works but only for so long until you run out of time. If you're at that point, you should probably GG and reset though.
If it's just all around better to have more bases, I mean, there is again not really a problem with that. I always use Starcraft as an example but, in that game you always want to be expanding. More expansions gets more income, gets more units more quickly, which gets you enough of the army and tech you need to kill your opponent. Technically, when it comes to expanding versus not expanding, the dominant strategy is in fact to expand. Yet, most balance complaints are about how spellcasters are too powerful or whatever, not about how OP it is to expand.
But again, even stepping away from that example, it seems like the game just encourages expansion. It's too easy to fill up a whole town. You can't really fit everything in a full town. The town has a pretty limited radius to build stuff around. You need expansions to stay caught up. You have so many action points that NOT expanding wastes a crucial resource. You could shoot for fundamentally rebalancing everything that I mentioned but... it still doesn't strike me as an issue. It's all about what you do with the expansions. What we probably need is for bases to potentially be able to die more quickly, or maybe for town centers to be more expensive. Radical sweeping change probably isn't necessary quite yet.
I actually used to be a huge advocate of options. More options is better, right!? Well, the problem with options is that you can't really balance a game around them. If you have a mechanic that you can turn on and turn off, it needs to be balanced with respect to the rest of the game whether it's on or off. This will single-handedly double the amount of work that needs to go into balance. Now sure, Arcen's got time compression technology, but I don't think it's that powerful yet. As it is, I'd say experiment more with the difficulty options. Turn up that score requirement, or the main game difficulty. That'll make the game harder. There might need yet more adjustment, but it again probably comes outside of sweeping gamewide changes.
Now the age of gods thing is a different topic that I don't know about so I'm not going to address that. I just know that more options is not necessarily better. But, if you are going in with 'too much momentum' then the game's probably a bit too easy with your settings. It'd be like if I complained about how the AI is "not so bad" in AI War at 300 AIP. Sure, it's not bad for me. Anybody else would be dead before they got halfway there.