As for that I would just say, is it an insult worth self destructing your realm over? Since, as Anaris has said, the Madinan isle is too dangerous to effectively fight a civil war and monsters simultaneously....
Of course any realm would choose survival over honour, however not attacking is not the same as making peace. Unless there is a serious risk of Aurvandil invading (I don't know what the political/military situation is with Aurvandil so I can't comment on the likelihood of that) I'd imagine the "war" to continue on paper while Madina sorts its rogues out.
