You are missing the third option. If people had some friends, some enemies, and lots of neutrals, that would be cool.
Ah, good point.
But most realms have tons of friends, and almost no enemies. Basically, players have successfully rebuilt Europe in-game. Unfortunately, it's the European Union of the 21st century and not the feudal Europe of the dark ages.
Unfortunately, the players are 21st century, not dark age.
The only way you're going to end up with people
not trying to get large chunks of the continent on their side is if, as with the scrapped Treaty System, it costs them something to maintain an alliance.