I just had to swallow my pride and take the campaign difficulty down to normal. Same in S2TW. I just get popped like a balloon if I play on hard. It's the same problem as you have - the AI coming at me with unbelievable stacks of units when I can barely afford half a stack of ashigaru/levies. The best one was a hard campaign yesterday in S2 as the Hojo. Turn 8, Oda land a stack with 15 units of yari Samurai in my territory and declare war. It's literally impossible for the Oda to recruit 15 units of yari Samurai in 7 turns (it would take at least 1 to load them on boats and travel to Hojo land).
Yup... just go to normal.
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