While the Silvan Elves are my favorite faction I also find them to be a turtle faction. After capturing all of Mirkwood you are free to expand in any direction. Also, you have two allies to your right, Dale and Dwarves, and also Lorien to the southwest. You only have to face OOTMM(also Gundabad but both have weak units) and Mordor, but Mordor usually concentrates it's forces on Gondor.