I'm sorry? CE would be allied with all their neighbors, and gangbanging any possible threat. OH hey, that's what Perdan and Vix are doing!
Well was that not the plan of GX? And we'll have to see whether or not Vix/Perdan will continue this path once GX has been subdued. I doubt (hope not) that all the current alliances will hold after that.
Having a viable realm? I think having a viable realm is fun, how about anyone else?
What makes you believe Alara is not viable? I can assure you that even with a city you can still have a viable realm in the right circomstances.
Personally I would rather see my realm destroyed, than to be the permanent slave of another realm following all their diplomacy and having no independence. Of course you'll try to make it viable then.