yes, something are as you describe:
- the AI will only walk to the nearest possible ressource
- the AI does not produce more and more initiates. It stops( or nearly stops ) producing them after a while when the AI thinks it has enough workers.
But that he doesn't tries to defend is not good. This can happen if the gold is far away from the main building and the attackers are not inside the "ultimate attack zone". The "ultimate attack zone" is a special radius around your main building. If any enemy unit is seen inside this region, the CPU player will attack the attacker with all fighting units he has.
But if the archers stand outside this region, they will not be attacked.
( thats not the whole truth, because its more complicated, but generally this is the base behaviour )