Do you think FtM created a more satisfying peace system?

I don't think it's better since the awesome split of Europe in to the real-life Cold War countries is now gone.

Aside from that, the peace process is still terrible, but this is because issues that pre-date FtM have not been addressed. The prime example is that is seems to be nearly impossible to get France correctly back together in one piece once Vichy forms. And if you puppet or liberate a country, it could end up suffering from a crazy-quilt of province ownership as there is no method in place for either you or your allies to restore lands to them. Once this happens the only way to `fix` things is for the problem country to find itself annexed and released.

Really what the game needs (and this would be a pain to code) is a peace conference mechanic that occurs when all the members of a faction (or atleast all the significant members) have been defeated. Something along the lines of EU3 though less free form. Basically a checklist that a player can go down through and pick out what their priorities are based on some sort of "point buy" system tied to the faction goals and who holds which VPs.

I get very nervous playing the game. Everyone seems to want to attack me, whether I play Germany, Soviet Union, etc.

I just noticed, I made Second Leutenant!

I agree about the conference system,but I'd also like to see an option to decide what to annex via mouse selecting/dragging(Ex.you play with Germany and you want only Alsace-Lorraine,so you drag your mouse trough those provinces or shift click them and you leave the other part of France as a puppet or something.)

What would help a lot is a simple decision that would allow you to give back any CORE of an ally you control or own. Would fix the problem of a dismembered France and Yugoslavia (with Croatia never really going away). And in the east, make Poland not Auto-Liberate, it messes up the front and creates an island of Poland in a sea of Soviet Union. Why Poland cannot into Soviet Union?