You're kinda right on track here. As an AI programmer, I'm limited in what I can do when, for various reasons displayed to the user, countries are supposed to hate or like each others. Changing the game design is of course doable as well but is a more extensive process.
I completely agree with the thread starter that it's a problem AI is often siding with the strongest power, resulting in a very static game once you grow large enough.
We're certainly going to continue working towards solving it, it might however take some time. I do read threads like these all the time and pay attention to what people suggest.
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