Perhaps Dan's having the same problem I've been having. After playing some 'all AI in' games where I got either overwhelmed with the game concepts while having so many AI running about or getting outright trounced by multiple AI warring on me at the same time, I decided to try a few low/dumb AI games just so I can learn the ropes without much opposition. So I pick 'Novice' world difficulty and either no or just one or two 'Novice' or 'Beginner' AI factions, usually Kingdoms so they'd be less inclined to immediately dislike me.
However, invariably right after Janusk shows up, I wind up bumping into another Channeller, usually a Fallen, who is already on his way to setting up a second city. And it usually goes downhill from there. It's like the game said, "Yep, nice choices in difficulty and opponents... but this is MY WORLD!!!!".
I'm still not sure if the game is simply ignoring my choices and filling in empty slots or simply spawning new Channellers at random and they're immediately setting down new cities. I've gone ahead and uninstalled Elemental and plan to do a reinstall to see if it's just some setting file that it decided to cling to that was constantly throwing a full roster of other factions at me (at what definitely didn't seem to the timid and stupid level of intelligence 'novice' would indicate), but I just haven't gotten around to doing so yet.