As someone playing in Darka, I'd be pretty disappointed if the GM's stepped in and decided to do something to break up the CE block. I'm also less than convinced the situation is as horrible and hopeless as you make it out to be. Did Merlin get treated badly? Yup. Was some of it his own fault? Damn right. He made some serious mistakes in his diplomacy and how he presented things and how he reacted to certain things.
Look, you seem to think putting hundreds of hours into getting change will mean you succeed. It just doesn't work that way. You have to actually do the right things. Merlin did not do the right things. He had a history weighing him down, he made poor choices and moved too quickly. Had Silnaria been ruled by anyone else but Merlin, the realm would probably be fine.
Now, that doesn't mean someone else can't succeed where he tried. You completely dismiss the chance of the rest of the island ganging up on CE and friends because it failed once. That's the situation Abington, Minas Ithil and Falasan were in many years ago, but they kept trying. And then suddenly Tara was a single city realm and Eston lost half its lands. It has happened before and it will happen again. The mighty will get toned down when people have enough of it.
I'm not advocating for GM's breaking up the CE bloc. I'm advocating for the GM's to put in place a situation that allows for a dynamic environment.
Any situation as time goes on will seek a stable equilibrium point. As time has gone on, the CE bloc has built a stable powerbase which won't be disrupted without outside intervention. This isn't about good/bad/ whatever, it is about the ideal that over time things will become stable. Raising monster and undead spawns to high levels won't directly disrupt the CE bloc, but it will make a situation where if people wanted to disrupt it, there is a chance that they could. Not that it will happen, but that it could happen.
You are in Darka. You may not see a problem with things, but that is also because you're in the single most powerful realm on the continent. You are the only realm whose distance from CE and military strength allows themselves the ability to do what they want. But, even still you are restricted. The only thing you can do is fight CE or ally with them. You can't be part of a third party conflict.
