The prime example of two character on the same continent problem mainly comes from CE federation. For years, they haven't gone to war with each other. AT became the very definition of stagnation and boredom. EC was like that for awhile but somehow overcame that. Then again EC never became an issue as AT.
I can attest to that, and I wasn't even in the federation. (For most of my time there.) We were simply an ally of CE. I was the Ruler of a realm, but I also had a second character as a troop leader, and eventually region lord then Duke. The Duke, I quickly stepped down though, because that was just too much consolidated power.
The problem is that no matter the intention, usually two characters are played together so that their realm is stronger. That's not a good situation.
