I'm a bit concerned about how the balance is shaping up - at least in relation to one of the earlier sources of inspiration for the game. Early on I read numerous references to Sauron and how he (by himself) could slaughter handfuls of men.
Right now the sovereigns feel no more special or powerful than the various NPC heroes scattered about in the world. Other than some essence sovereigns are equal to or weaker than the NPC heroes.
Another issue right now is the dynasty system and its lack of meaningful impact upon the game. The child of a sovereign should be a powerful being (and his / her birth should have great significance). Think Hercules (demigod) in terms of importance.
The following is a list that proposes a new balance for basic characters / creatures of the world with strength measured in #s of men (ie, 5M would mean that being should be able to kill 5 men (or women) singularly in tactical combat). This doesn't take into account levels or anything like that, just the starting strength.
Epic Creatures (Dragons and other such large creatures) : 400M
Monstrous Creatures (Golems, Alpha Bears, Drakes etc) : 50M
Sovereigns : 20M
Demi-Sovereigns (offspring of sovereigns) : 12M
Large Creatures (Bears, Large Wolves, Large Spiders, etc) : 8M
Heroes (recruit-able NPCs at LVL 1) : 5M
Normal Creatures (wolves, giant rats, etc) : 2M
Men (basic soldier) : 1M
Small Creatures (rats, small spiders, etc) : 0.25M
As various creatures level up / become more powerful, they should maintain their "power ratio" in respect to the other classes. For example a LVL 2 Sovereign should still be 4 times as powerful as a LVL 2 hero. Of course if a level 10 hero were to face off against a level 1 sovereign, the predefined 4:1 ratio would be greatly skewed in favor of the hero.