Once you start getting a successful settlement going you can do more interesting things in the game like taking on factions and exploring difficult regions. It opens up more which is a shame because not everyone wants to do that level of management. It's possible to buy a property in a city and use that as a decent base, minimizing a lot of the work that goes into that.
Yep, either will work. I used to always settle in town but after having done both now, I actually think building a base is easier. Because you can extract all of the essentials from the environment with just basic tech, and the raids give your characters steady combat experience in a relatively controlled manner (assuming you settle in a safe area away from cannibals, fogmen, and other enemies who will kill you).
But yeah, once your characters reach a certain level of ability, you can set about tackling the high level goals you want to achieve with your game. Speaking of, my team is getting there. Here is a glamour shot, just because.
I went with a little bit of LARP on the gear selection. As mentioned in the thread, samurai armor is probably the best, despite the penalties that come with it. But I like the look of the armored rags and faceplate, and that's the Shek style. The armor is all masterwork except for the chainmail, because that takes forever to craft and even at 90+ armoursmith skill, the chance of a drop is only 1 in 4. I will get it before we go to fight the Bugmaster but didn't want to go to the effort just yet.
You can see my guys are getting up there in terms of combat skill. This group can successfully defeat the raids we get now, which includes 15 to 20 Band of Bones or Kral's Chosen. I messed up a little bit by not developing their dexterity early on. I forgot that you should really have your guys use katanas for the early- and mid-game, so that their dex scales appropriately. Then you can pivot to heavy weapons or whatever you want.
Also I should confess I've been using the 5X experience mod this playthrough, just to cut down on the grind. It sounds excessive, but what you see here took about 40 hours of playtime, and is still not really an endgame level party. Kenshi vanilla just involves a fuck ton of grinding, and as someone who's already played the game for hundreds of hours, I would rather speed things along a bit.