The problem is that many of the current rulers are actually reasonable people, and reasonable people generally find reasonable solutions to problems. Usually, a war is not reasonable for both realms at once, if it is even reasonable for either of them.
As for the current (nearly) war, reasonableness of rulers might yet again nix it. Which Morgan would very much like, because he wants a war, just not THIS war. We were actually only a few days away from instigating the other war before this happened. Though this incident might actually help us some if it is resolved.
As a player, I have mixed feelings about if this is the better war or not, though it probably is in many ways. IC, though, Morgan thinks the other war would be much better for Zonasa. And it probably would, but not definitely, however, I know things that Morgan doesn't. Based on Morgan's knowledge, war with Cathay would be a bad thing, a certain other war would be a good thing.
EDIT: Reasonableness appears it will not rear its ugly head in one of the people who would need to be reasonable. So war is almost certain to go ahead. This is probably a good thing. I honestly don't know how this will end, but I do think it will probably change the shape of the FEI, unless Zonasa and Kindara somehow bring a very quick end to it. But I really do think it will be escalated to eventually include everyone.
