Actually, this game is very similar to DoW2 since you like Dow2. In DoW2, you pick a commander and you get to level up that commander, pick which skills he gets, and pick what kind of armor/weapon he gets.
Demigod is the same thing, except the whole game you only control 1 commander and nothing else. There is no base building like in DoW2. In DoW2, you find yourself capturing areas, running to another area and capping that area. Demigod is the same thing, you are running back and forth between 2 flags to capture it.
As for the single player mode, my understanding is that you start at level 1 at every skirmish so they don't carry over. So 4 skirmishes later, you still start at level 1. You might get some flavor points that acts as upgrades but they don't mean much. Eventually by the 8th skirmish, you beat the game.
This game is alot easier to learn than DoW2. Both are very fun games.