I think that the game would be better if you could turn off colonial nations. I know there are mods that do this but every time the game updates these mods no longer work.
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Instead of an automatism forming colonial nations, i agree, it would be more straitforward to increase autonomy + unrest for oversea provinces. At the same time the 75% autonomy floor for oversea provinces in no colonial territory eg indonesia should be removed. This way players could alleviate the declining returns of their obersea provinces by forming colonial nations\vassals by decision. Or they could send more manpower\soldiers there to quell the rise of insurgents. The degree of autonomy + unrest should depend on distance to capital.I think that the game would be better if you could turn off colonial nations. I know there are mods that do this but every time the game updates these mods no longer work.