It would be too disadvantageous for realms with a lot of bad regions.
Um...it should be.
Remember, the balance isn't intended to be made based upon current realm borders. If your realm gets screwed, well that sucks, but this is about long-term game balance.
Namely, I just think we should implement something and start adjusting from there. We can suppose what will happen all we want, but until we actually see how dynamics change, we'll never know for sure. If your personal strength goes down, you're gonna complain. If you're personal strength goes up, you're probably gonna support it.
In general though, it doesn't matter what change is made. A change just needs to be made. Primarily, basing the stats actually on something real. That's the whole point of this as far as I remember.