Well no one really liked Madina is what I hear. The treaty should of been something like, when a clear victory of the war has been established Aurvandil must give back the city.
You can look it up to confirm, but I'm pretty sure it did.
And yea, nobody liked Madina. They refused until the very end to promise not to invade D'Hara again for Paisly. By then, it was too late. Had they done so when the war broke out, Aurvandil would have been destroyed quickly.