I understand the allure of keeping a small, focused empire, without the hassle of a large unwieldy empire. I love to play that way myself.
However, I do not think that this style of gameplay should be a competitive alternative to expansionism. The idea that building tall should be just as viable as (and stands in contrast with) building wide seems to be very prevalent in this community, but it's a bad idea.
There is no reason that a large empire should not be able to develop itself, per capita, as much as a small empire, and if you design game mechanics around letting small empires with small fleets (in terms of fleet power, so this includes tech) reliably stand up to large empires with large fleets, you will end up with a military system that is full of arbitrary limitations, because there isn't any good reason why a small fleet should consistently be able to stand up to fleets that are significantly larger.
Design philosophy-wise, reward should usually be commensurate with risk, and an empire that constantly risks its own security by initiating wars should see greater rewards than one that just sits on its ass looking inward. Small (not tall, because there isn't good reason for a large empire to be significantly "shorter" than a small one) empires should be viable, but not in the same way as large empires.
A small empire should always be less secure than one which has a large competitive fleet of its own. You should either have to ally with other empires to pool your might into your own large fleets (i.e. federations), or you should have to find some way to make yourself useful to the large empires that could easily conquer you (i.e. subject status or frequent bribes). You might survive, and with allies you may even conquer the big boys. But your security will always rely on others.
However, I do not think that this style of gameplay should be a competitive alternative to expansionism. The idea that building tall should be just as viable as (and stands in contrast with) building wide seems to be very prevalent in this community, but it's a bad idea.
There is no reason that a large empire should not be able to develop itself, per capita, as much as a small empire, and if you design game mechanics around letting small empires with small fleets (in terms of fleet power, so this includes tech) reliably stand up to large empires with large fleets, you will end up with a military system that is full of arbitrary limitations, because there isn't any good reason why a small fleet should consistently be able to stand up to fleets that are significantly larger.
Design philosophy-wise, reward should usually be commensurate with risk, and an empire that constantly risks its own security by initiating wars should see greater rewards than one that just sits on its ass looking inward. Small (not tall, because there isn't good reason for a large empire to be significantly "shorter" than a small one) empires should be viable, but not in the same way as large empires.
A small empire should always be less secure than one which has a large competitive fleet of its own. You should either have to ally with other empires to pool your might into your own large fleets (i.e. federations), or you should have to find some way to make yourself useful to the large empires that could easily conquer you (i.e. subject status or frequent bribes). You might survive, and with allies you may even conquer the big boys. But your security will always rely on others.
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