I think the fact that they are putting buildings outside the main city is an attempt to counter some of the problems you have both mentioned with the tactic of causing devastation.
If you are able to run around an enemies provence without being stopped then it should be quite possible to completely destroy a huge percentage of their infrastructure. Mines, roads, docks, fields, barracks and probably many more buildings can now be damaged when previously all that happaned was a growing scorched looking area.
I think that this time economic warfare should be entirely possible and worthwhile.
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