The Cagilan Empire functions very much like a real Empire, particularly in the manner that they create and maintain client states to secure their borders. Coria and Talerium are two such client states.
While everyone is perfectly entitled to their opinion, and I respect that, the fact that your character is not a realm of Talerium, Coria, or CE makes this a very hard statement to make. Yes, it may appear as such to one outside of the alliance that CE currently maintains but a simple statement like this is false, at the very least for Coria. I can only speak for Coria as my character is Corian and happens to help a lot with diplomacy in our realm.
Now, I can almost guarantee that CE began the idea of creating the Corian colony with the idea of it doing exactly as you have said. However, as one of the original colony members, I can say for sure that things have not exactly happened the way that CE would have liked them to with Coria. We haven't done everything they've wanted us to do, and it reached a point where there was very broad disagreement and distrust between the two realms. This has since been abated, just as the disdain for Eston has largely been abated since the signing of the treaty, but Coria is far from a client state of CE. Yes, we are their ally and our military prowess has at times increased the strength of the "empire" that CE may maintain but we can't be said to be a puppet realm of them. Many of our CE allies were upset that we signed a treaty to get us out of the war and can no longer support them in their trans-continental fight.
As it stands, a vast majority of your arguments though stand very true, and I'm surprised you're one of the first to actually state it. Although, I do think it a bit overly ambitious to seek to destroy CE utterly and completely due to the simple mechanics of the situation. CE is the single most populous realm on Atamara and it will be very hard to destroy any realm that large in any reasonable amount of time. In fact I don't see it as feasibly possible unless EVERY realm on Atamara fought against them. The fact is that destroying realms is NEVER taken lightly and is not easy to do before a realm either surrenders in which it is expected they are at least spared or realms begin to think twice about destroying a realm completely as they wouldn't want to be utterly wiped off the island if they were in a similar situation. As one of the few rulers who has ever personally destroyed a realm, I can say it is a very hard thing to do both character wise and as a player because you know that every realm has so much history.