No realms should be in Rines or the graveyard of Riombara, all that's going to do is isolate them, and isolated realms only go two ways: They either get wiped out by rogues and daimons(like Riombara), or they're far enough away that no one cares/can do anything feasible and build up and become gold-farmy conflict starters. With the current mixmash of borders and neighbors we're forced to deal with each other, whether it be for good or bad.
It's a challenge but not impossible.
A realm in Rines can become a westgard like realm fighting rogues, or it can become a looting realm, with the entire east coast at their disposal.
It can also expand, seceed and fight it's self.
I Think a realm in Rines can definitely impact the entire islands politics if it finds an effective way to loot other realms.