Does this benefit Terran?
Yes, the nobles that were trapped outside of their capitol can now recruit and refit.
Is there going to be a new realm that encompasses the same lands as Terran?
That should be the question to ask. Changing the internal make up and politics of Terran could have been done without a secession. Will the new realm of Phantaria end up controlling most if not all the lands of Terran... yes, I find that outcome to be quite likely.
