The only way I see this working is if you're able to package and sell this less as an Empire that you will have to mortgage your sovereignty to join than as a sort of anti-Cagilan security guarantee. Basically get the entire island to join into a defensive alliance that is specifically against the Cagilan Empire. Then they keep on doing what they want, and rely on the idea of an island-wide alliance to deter the Cagilans from interfering in their affairs. I don't know if you can sell that though if the price of joining is too high.
I've thought about it. However, doing so will essentially get Merlin lynched. Either by CE or CE's puppets in Coria.
I have to survive this first week. If I do that, things will go much better.