The pop limit will mostly likely be slowly reached because you have to create a lot of houses(at least I think so) which will take up a lot of room, so you have to have a larger castle to hold the houses and a larger army to protect the larger castle. And units can level up by killing stuff etc. so people can still be superior even if both guys have the same amount of fully upgraded units.
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Picture made by Aametherar the orc (Elves are the best!)
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