Finally finished that quest in Inselburg to get the king on the throne etc. What a pain in the ass! But there are 85 Dark Paladins there, which I'm very happy about because there were none in Portland at all. Until this point I had been struggling a bit with all four types of dragons (Red, Green, Black, Ice - not Bone

) and no fifth unit because I only had two Archdemons. The problem, as usual for KB games, is access to the units you want. There's nowhere to buy any dragons at this stage of the game, so I guess I will now stash those dragons and go back to level 4 units + Phantom + Resurrection, same deal as in previous KB games.
Having said that, the game is really enjoyable and I have to say that the first three islands are excellent in terms of map design, quest design, etc etc. I rarely felt like I was grinding for grinding's sake. On the other hand, Darenbam seemed pretty boring to me, reminding me of all those shitty Viking islands in WoTN