I do agree about bad IC decisions, probably leadership and diplomacy too. There are many factors why a realm run successfully, since we have been playing Battlemaster for sometime, I think we all know more or less what are the factors. How many often we have heard about "lead by example" in real life, sometimes it can be apply in game. Or maybe Xavax trying to "finish all its opponents in one go" like in "killing 2 birds with 1 stone" phrase? I do not know, but Xavax current position is certainly untenable unless its leaders do something about it.
The current Xerarch is the most ballsy ruling character I've ever played with in this game - perhaps with the exception of Leta Kindon leading Carelia into the great southern war against Cagilan Empire. Selenia is persuasive, strong willed and in some cases a hot headed and making irrational decisions. Two times, we've failed miserably - first the attack on Itorunt (which btw is by far the hardest target in the whole south because of it's large income), and recently in Ibladesh. In Ibladesh we were inches from completing the TO and acquiring the walls in time for the enemies assault.
One might call it bad IC decisions, but risk makes it fun.
We might be in a sticky situation, but it's still fun.
Also if your fear stagnant politics, alliances and caution ruining the continent, Xavax is not the one you should destroy (referring to the OOC casus belli: Xavax as "the resurrected CE", at the onset of this war).
