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Agree.
But Razorbird is not talking about add new fictional nations, it's an event to a nation "hold the flag" of commie, axis or allies if the original alliance is already terminated.

...and about Tomania/Tropico/Latveria, they're not new nations at all, it's just a flag extension change that changes flag and name.
Permitting that sort of silliness sometimes can really derail a mod's discussion, though. I once, as a cheap gag, added a "Justin von Bieber" as the ruler of a small German statelet in an EU3 mod, a year or two ago. Everybody immediately starting suggesting that Lady Gaga, Mario and Sonic be made the rulers of other places, all of which was completely against the main point of the mod. The discussion got stupid real quickly, so Justin von Bieber was removed entirely in the next released version.