Good idea, thanks. I've incorporated it into the guide. I've also added in the idea of five "tax towns" as suggested by Slaists.
I've changed my mind on the armor vs weapon upgrade issue. After experiencing the attrition from archery fire over the course of a full campaign, I think the armor upgrade is the best choice for your first smith town. I'm still inclined to have a weapons upgrade in a second smith town to produce shock attack units (although even then, I would less emphatic: the AI is very good at targeting your elites for archery fire). However, I think protecting your frontline is a higher priority, especially in the early game when you have few elites.
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