What happened to the church of old is that lots of players on Dwilight decided it was more fun to tear things down than build them up.
SA became powerful because lots of players decided to play characters who were devoted to the church or at least cared about it and respected its spiritual authority; i.e. somewhat more typically medieval-ish characters. SA is weaker now because more players are choosing to behave like a less common kind of medieval noble (not non-existent, mind you: just less typical).
The Catholic Church didn't become strong by picking losing battles, and neither will SA.
Tell me once where the catholic church was seriously offended by another nation and just backed off. If you stop enforcing things even if there is a bit of a struggle, then there is no longer power held by SA, especially when that block will sit there against you ready to act when ever you displease them.
