This is how I picture it differently -
If I had been the head of the house, I wouldn't have gone and shouted about recruitment on the thread itself (since it would make me a target) - instead, I would have quietly tried to talk to as many people as I could (in game - invite secretly, or send them messages etc). My weakest point would be at the start where what happened to Tarinen is possible - when she ends up inviting a DF who has already organized the team and takes over the house. However, that's a one off chance (and as Jenn said, we gave ourselves at least an equal footing by planning quickly).
More probably, if I don't hit a DF right away, I would have tried to get as many people as I could in the House, not investigated them and not revealed myself (or the other members to them). I would make them give me their money and allocate tasks and if someone is consistently 'failing' then I would investigate and get them killed eventually. With aggressive recruitment, that would be easy, plus killing off 1/5 of a df cell is a big blow.
The fear for us was that every day, the houses would increase in strength. We can choose to stay out of it and keep all our money but eventually we would be out-moneyed. With 500 gc let's say, we would never be able to compete with a powerful house. So we HAD to join houses and halve our income.
The town couldn't have a visible leader, and they didn't have people joining (which btw makes no sense to me - I would have joined a house asap as a vanilla townie because my own money isn't enough - I can keep protecting myself while people and houses go stronger, doesn't really help me and isn't fun). Had people been recruited/recruiting and stayed (not forced recruiting, but if you talk to people and convince them), then I think your major threats would have been other houses then the 5 dfs, who ideally would have been targeting each other.
That was the worst case scenario for us (which I was worried about) - we needed to kill the Other df cell to really gain power, and if we had focused on that, the Houses would be growing stronger while we eliminated each other.
So the game could have been played out very differently. I don't think in itself it was overbalanced, but the trusting each other (which isn't DF Rpish really) was what helped us out.
Even so, I think, as Weir pointed out, we could easily not have had the luck we had, and then things could have been very different. If Tarinen hadn't picked Jennifer first off, we wouldn't even have had a foot in the door, we wouldn't have had a spy in a third house, etc.