City design rules from the DMG. Most of the population is indeed 1st level mooks. In 1e D&D orc/goblin armies composed mostly of lv1 enemies were also expected ecounters as you went up in levels.
You mean the game where the starting story has a "god" that can't even deal with street thugs? I would say that's a lot more misnaming that anything D&D has.
There's also "Invincible Fury of the Dawn" that doesn't make you invincible or actually gives any defensive boost. Or Bolts of Solar Fire that can't actually set something on fire. Or yet "there is no wind" that doesn't actually have anything to do with wind besides a very specific situation.