In a diplomatic LAN multiplay of Dom 1 I played Tethior the master smith (alchemist) as rainbow mage with everything but death or blood (Some of you rolepalyers out there will get the reference).
If you are playing in a fairly civilized multiplay game, there's a lot of fun to be had by selling the cheap (and with that alchemist, versatile) magic items to other players.
The smiths of course can make earth boots for themselves, and then they make decent support spellcasters with the 'blade wind'.
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For the new Iron Faith Version, I tried the mounted arch-mage. Gave him lot's of fire and earth for armour and attack bonus, decked him in blacksteel and weapons and made him lead the knights personally. Worked really nice.
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As you can tell by now I don't really play Dominions as a mini-max wargame, but more as a RPG on a strategy scale. The archmage is the only mounted human one can get for Ulm, and the Iron Faith just seems to need a mounted human cavalry-hero for a "god".
Jolly good fun