Republics have long been known to generate some very strong personality cults in this game. And as you have suggested, this leads to stability and stagnation. However, monarchies can do the same. It's not really the government, it's the players.
The difference is that CE is a true republic, while most other Republics in battlemaster are basically elected Monarchs. There isn't a personality cult going on in CE. Heck, our PM isn't happy with the Federation we have, but doesn't see an IC honorable way to change it without going against the Senate.
It's the Senate that is blocking all legislation, and by that I mostly mean older players who have been with the League for a long time. I mean, literally right now, Tara is having a vote on whether to stay in the Federation, and our own Senate, which has indeed heard these reports, is burying their heads in the !@#$ing sand.
"Oh you're just trying to declare war, blah blah blah" You just got told by our own PM, and have a letter from the ruler of Strombran, that Tara is having this vote. The very fact that the vote is going on should be a gigantic red flag that there is something wrong with Tara's relationship with the League. *sighs* I'm frankly flabbergasted.
