The internal atmosphere wasn't the problem: there's always someone in Fontan to pick a verbal fight with regardless of whether there's a war. However you could be right about the lack of imagination. My old character Moira had some success raiding northern Sirion, but the bulk of the military command was fixated on big pushes which won glorious but futile victories which frankly were just typical MMO grind.
I should note that I managed to become General of Fontan in late 2009 by pushing for more imaginative strategies, but when the Marshals of the realm all refused to actually implement those strategies, and the Judge (who happened to be more or less the leader of the orthodox faction) supported their disobedience, I stepped down after less than a month and left in disgust.
Since that time, Fontan has gone continually downhill.