I've just finished the Islands and heading to the Dwarven underground. Here's a couple of cheap tricks to use:
1) Buy the crown artifact that gives +100% dmg to thorns. Then fill up on Thorn Hunters and grab the 3 Royal Thorns on the first continent. The hunters will do massive damage. Royal thorns are really powerful since they can spawn large stacks of expendable thorns, but the problem is I could only find 3 of them. However there's a way to fix that using the next trick...
2) Sacrifice is possibly the most overpowered spell in game. You sacrifice some units to increase another stack _permanently_. That means that since you have an infinite number of cheap units like swordsmen, you can create any number of other units as long as you have 1 of that unit. Use this to fill up on Horsemen and Royal Thorns, and you should destroy everything. Also Evil Beholders on the first Western island are really good units. Swordsmen also serve as extremely sturdy cannon-fodder units.
After I figured out these tactics, the game got a little too easy, but it's still reasonably challenging since you're limited by leadership.
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