I played a wonderful campaign as the Welsh a couple years ago -- and actually attained a total victory. Unfortunately, I don't have access to the TGAs to prove it.From what I recall, macsen rufus is right on the money: ally with the Vikings and take over Ireland ASAP. After that, you have a safe staging ground from which to gradually beat down the West Saxons/Mercians. The Celtic warriors actually pack quite a nice punch when used en-mass, and can certainly take apart most spear units when required.
I think I had about seven kings named "Conan" in that campaign, which was also kind of awesome.
Seeing that this thread is actually about rebels, I will say that bribing them (especially stacks that contain huscarles, etc.) to get different troop types is always a good idea. Once your economy can handle it, of course.
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