I don't see this as a bad thing. What is bad, indeed, is to see realm who will not go to war because they are afraid they can gain nothing at all from it. That looting and rebuilding becomes a valid alternative to steady advance works well for me.
The problem is that it's not
"a valid alternative". It's become the only viable way. Even if you manage to take a region peacefully via FTO, they almost always drop out the bottom very quickly, with no practical way to rebuild them. So realms do't do it anymore. The only reason to TO a region is to deny it to your enemy, or destroy it.
