I've not played AW in conquests so not using walls and cats might be made unescessary by 1 or 2 armies.In PTW,however,walls and cats are a must.We need a kill ratio of at least 10 to 1,you won't get that by attacking out of cities.
The key to winning is to defend as cost effectively as possible whilst building infrastructure in our back lines,if we have any.
By all means pop the hut with a city.
If anyone can survive through the middle ages without walls and many cats,they're a better man than I am,Gunga Din.