I think the solution is simple: more war, and more destruction. When everyone has a large proportion of devastated regions, then everyone is equal, and there is no reason to avoid war, thus perpetuating the destruction cycle.
I think you'll find that doesn't work and is certainly not fun game-play. When no one makes gold, there are no wars.
To be honest the game has not been the same since peasant numbers started affecting production. It has done nothing but add months of wait for regions to recover and that has done nothing but lead to less wars due to fears of the destruction it causes.
