Thanks for the feedback. Originally, I was going to make the divisions spawn in a city that you chose within in your territory, and default to a random placement if all of your cities were taken.
Also, I agree with the idea of the unit movement feeling clunky as I didn't do a whole lot of testing with other people for the first update. I tend to go with what works best for me until I receive feedback, and that clearly wasn't a great choice.
I can definitely see how these issues would majorly affect the quality of the game, and I'll look into making a patch to fix it.