Sure, we could have begun a huge war with SA, and gotten backstabbed by the Lurias and Aurvandil. We'd be in such a GREAT position right now. You are right, we totally should have declared war on Astrum. What on earth were we thinking?
Interesting you say that when Mendicant said to Machiavel he'd support you unconditionally against the Luria's and S.A. exactly during the time when Asylon was war with Kabrinskia.
You should have declared war, Barca would probably never have been invaded by Aurvandil (As we would have been supporting you) and D'Hara would have been saved from its massive collapse from famine with its markets open to Aurvandil during the longest winter.
