Afaik Pdox wanted to make the threat system like the thread OP described it. Johan somewhere stated that "minor countries will be overhelmed by german threat and start aligning to the axis to seek protection".
So, the concept isn't working too good atm, but it's probably only a matter of finetuning the diplosystem...
So, the concept isn't working too good atm, but it's probably only a matter of finetuning the diplosystem...