Some of these effects are already present. Too Much Peace lowers the acceptable tax rate a realm can have. I believe it also reduces the number of recruits that your RCs produce. (Although that may be tied to low glory. I forget which it is, but it's there. Regardless, it's there, and hits high-quality RCs the hardest.)
I think one problem is that our "incentives" are to avoid "bad things happening". We should focus more on rewards instead of punishments I think. Too much peace punishes realms that can't get into a war, while making it even harder for them to fight a war in the future. For small realms this is especially a problem. (and I realize this is suppossed to be exempted for small realms, but since small realms are quite relative and differ greatly on different continents, it is still affecting a small realm like Coria, on Atamara, and there is nothign we can do about it because we're too small to fight in the massive war that is taking place.)
A declaration of war will destroy our realm, and without one, our realm is being destroyed by Too Much Peace. We'd like to go to war, but can't without changes anyway.
