The "good at water, poor at land" deal is pretty much handled by units that have separate landshapes, like mermen, icthysatyrs and the like. The landshape will oftentimes have worse atk/def and definitely worse movespeed than their underwater forms.
Also, pale ones are not only great at smashing down castles, they're also amazing at holding them. They're strong, have minds, and don't eat supplies, so pound-for-pound they're great defenders (I believe their perception does play a part, slightly reducing their effectiveness) as their awful combat stats are balanced out with great strength for their size and cost, and their mysterious lack of appetite lets them just sit there regardless of what kind of supply stockpile you happen to have.
As for lizards, I've found myself using runners more and more. The stats are fairly similar, with the exception of using a spear instead of a trident, and I think maybe one or two points of health. In return, they get VASTLY improved movement speed, which helps them run under missile fire and get into melee range all the faster, letting their strengths actually get to work. Yes, losing the trident is a shame... But with the bite, the spear and the very decent strength, they're really not half bad.
Also, I've been taking Prod scales with Ur a few times lately, just so I can pump out more units from fortless provinces... Probably a terrible waste, but hey. Same deal with LA T'ien Ch'i and EA Sauromatia, but those also have fort units that are worth recruiting and eat a fair amount of resources, so there's that.