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Tall is more practical. Get your forest, who cares about the wider world.
The point is defeating your enemies, and to do that you have to conquer their land.
You'll get a lot of money from taking over them or razing them. You know, instead of just camping in your own home doing nothing.
not for the wood elf, you just have to upgrade the principal tree to level 5 and you win
Until the Empire declares war on you and brings the might of 80 settlements down on Athel Loren and your 2-3 armies.
I mean, 2 -3 armies is really all you need as wood elves when you play tall. The empire can send as many armies as they want, but as long as you can ambush them and make them suffer from forest attrition you should be able to prevent any armies from sieging the oak of ages. Even if the situration becomes so bad that you have to do a defensive siege battle at the Oak of Ages, you still get a pretty sizable garrison force alongside your full stack army to defend it.
Playing WE like every other faction in the game gets dull tbh.
If you can make alliances with your neighbours move on to the next forest. If you don't trust them kill everything until you feel secure.
You really want to avoid great power penalty until you make some allies but that isn't always possible.