The geography of the realm is just totally not going to work, it is both too large and too thin. Maybe if it dissolved into 3-4 realms, all within an empire (similar to what Luria is going to do), we could keep being a powerhouse, but otherwise it is going to come to its knees the second a decent group of realms decide to fight us.
That sounds a lot like strategic secessions... If this wouldn't be, I have a hard time seeing what would.