Some of the suggestions here are pretty interesting.
About 'hardocoded' alliances: Not until the diplomacy - and other related things - in this game is improved. Before any of what has been said here could be put to use, the alliances in the game should be more complex; for instance, you could sign a non-agression treaty with someone, while not allying with them - you would not help them, but neither would declare war against each other. This is simple, and yet is not there. And before a thing as factions could exist, alliances should influence and be influenced by CBs and other things, like what cores does a nation have. For example, you could have a decision to gain/lose cores depending on who your allies are - and vice-versa, you should be able to form decision-based alliances depending on your cores. And so on. I still believe that before implementing new systems and such, Paradox needs to improve what they already got, to include more options, more decisions, and etc.
And saying that Paradox is smart for not doing a WW1 expansion first is an understatement: the fact is that Paradox is smart for having made a vanilla V2 that is, for lack of a better word, empty. While EU3 and other have been shipped with severals starting points, V2 has one. They could literally make dozens of expansions, based on historical events and conflicts alone: Boer's Wars, Opium Wars, germanic unification, War of The Triple Alliance, and others. Also, the government: there's nothing like a leader to a nation, like an emperor character, or a president. The senate, or chancellery, and anything of the sort is purely imaginary, and counts only as POP influence bonus/penalty. The election system is simple at best, as is the rebelion system.
What I'm saying is that there's many ways they could improve the game; and many more others where there's room to new things. I honestly don't know if that's just genious or perverse as well, but such is the industry, and after all, everyone has to make a living somehow.
For those interested in reading books instead of Wikipedia entries, Norbert Elias did some great essays about why the Second Reich behaved like it did and why the Weimar Republic failed.
Do you have any links for us? I study philosophy, but social studies have been an interest to me for some time now. I only read parts of the Civilizing Process, I would like to read more about it. If it's in portuguese, all the better.