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However, I only expand like that if I am not threatened by monsters or an early war and if I can sustain it. Dunno. People will probably say it depends^^
This is just a general rule, your mileage may vary. But you wanna get beefy heroes to resist enemy invasions.
If you build a outpost, you'll only have campsite that will cost you 10 gold per turn, plus additional ressources to develop them into a city. That is only useful for when you decide to control a region that is far away from all civilization, or snatch that juicy ressource from an opponent, although that wouldn't be so sustainable on the long run.
If you're going into vassals as a strategy, you can intentionally start a city then release it as a vassal to then continue expanding that way, but otherwise going wide in this game isn't quite the same as it was in previous AoW games.