If one looks through history, autonomy of colonies varied. The Spanish set up viceroys while some other powers directed control from the home capital. I think this should be a decision. Basically the forced forming of a colonial nation does not make sense. However, it should be a player's choice. This should happen when you reach 5 provinces. The game should prompt you if you would like to form a colonial nation. Also, if you want to create colonial nations later that should be under the subjects tab. In addition, there should be some events that force your overseas provinces to become colonial nations. When things go really bad they revolt completely. In summary, the forced colonial nations should be gone, and instead they should be either a strategic choice or forced via events. When I say strategic choice, what I mean is that there are benefits income wise and expansion wise for colonial nations. That means they actually efficiently colonize!! Or if you want to direct the show and maintain control, you will find it hard to raise troops in the colonies and not have help with colonial expansion. Of course there is more that needs to be hashed out but i think this is a solid start.