Dale is by far the hardest faction to play so far. Rhun's clan tribesmen, and Balcloth are severely good pre-development militia grade soldiers. Meanwhile Dale's Hearth Watchmen, and Rivermen are essentially useless. I never really liked their archer units, and they are really an underpowered faction even in the Meta game.
However, the advantage to Dale is it can become an economic powerhouse. Just do as LordInquisitor said, and focus on farms, then roads, then markets, and if you have ports, place them above markets. Put all cities on low taxes and hunker down to expand your cities. If you play your cards right, you'll eventually get some higher tier units, while Rhun will still be throwing militia at you. (Not to mention Rhun's Medium soldiers are perhaps the worst in the entire game so they are not problem)
If you are attacked, make sure it's in a city or another defensible position. Rely on your longbowmen to take down first any mounted archers (Variags) because they are annoying. Then you may want to hit any generals, or just any unit for that matter (lightly armored unless you have really good archers.) Place your hearth watchmen at choke points, AND ALWAYS TURN ON SCHILTROM. If you have already taken out enemy archer units. If you have the vastly inept Rivermen, use them on armored troops ONLY, and don't get any armored troops you may have near balcloth, they will tear them to shreds. Eventually once you get Dale Cavalry, and some Stronger Infantry, Rhun should be a walk in the park.
After you defeat Rhun. Just hunker down, and improve your economy even more. Eventually an Invasion will be called against Dale. Be ready to field as many elite units as possible, and make sure your economy can maintain it. After that, I recommend destroying Mordor. Good Luck!
