The cold, logical strategy in this moment is to just grow during each reincarnation grinding mobs and take advantage of learning from mistakes especially since it becomes a luxury to be able to make life-threatening mistakes.
I guess he became defeatist after seeing the powercreep? Or rather, his goal immediately switched from tackling the issue head on and instead was to literally run away from it. Hope that the monsters are only within the city, and that there's some safe haven instead... somewhere... Which, to be fair, isn't that unrealistic to expect out of a normal human being put into this situation? It's honestly pretty consistent with his character too, he's usually always prioritizing only himself and trying to hunker down on one spot until the problem goes away... Does say a lot of what we'll have to deal with I guess later on xd.
Anywho I guess this is when the story actually goes past its prologue then.