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There's a pretty obvious solution to characters with low HP/defence that die in one hit - don't let them get hit! Your mages, priests, archers, and the like should *not* be exposed to the enemy, and you shouldn't expect swordies or pegasus knights to act as tanks, either. That's not a balance issue at all (though perhaps you got RNG screwed), that's you trying to make units do what they shouldn't. The game gives you high HP, high def units - use them.

The multiple storyline thing is something that hasn't really been done in Fire Emblem before, at least not this extensively. It's an interesting experiment at the very least.