So I left this running for about a week and came back to it periodically, never changing anything, just to see how far the AI would spread out.
In all that time, they set up only 1 town.
So you can only recover health if you choose to add +10 Hit Points and you can only find them in like 5 chests in the starting area? Ok, that seems perfectly alright, I didn't want to heal or anything.