Having read through a bit of the post-release discussion, I think I see a solution that might appease both sides. Why not have the option of building a standing navy, with added benefits, alongside the current system?
So for example, if you're France and you only need the navy once every 50 years to deal with crusades and the like you can rely on merchant fleets (the current system). Maybe make them have a fairly high maintenance cost, maybe they cost more in neutral provinces than they do from friendly provinces, and maybe you can't shattered retreat to them. So useful for getting your armies a short distance from point A to point B every now and then, but kinda trash otherwise.
But if you're, say, Sardinia or Ireland and a lot of the fighting you do will involve a fleet, you can invest (maybe tie it to the dockyard building, so it's organic?) in naval levies. They have a lot less downsides than merchant fleets (lower maintenance and free to raise, can shattered retreat to them if they're available in a sea tile, etc) but might not be worth it if you're, say, germany and don't have a lot of overseas ambitions.
And finally, a naval screen like the army screen, but instead of levies and men-at-arms, it's just a place where you can either rent merchant ships or raise your own levy fleets if you have them. the merchant fleets cost $ from friendly naval provinces, or $$ from neutral provinces. Your levy fleets are free to raise and are cheaper to keep raised, but have the cost of having to dedicate money and building slots to dedicated naval infrastructure. Maybe the AI would weigh it by percentage of coastal provinces or overseas holdings, and invest in it more the higher the percentage is?
So for example, if you're France and you only need the navy once every 50 years to deal with crusades and the like you can rely on merchant fleets (the current system). Maybe make them have a fairly high maintenance cost, maybe they cost more in neutral provinces than they do from friendly provinces, and maybe you can't shattered retreat to them. So useful for getting your armies a short distance from point A to point B every now and then, but kinda trash otherwise.
But if you're, say, Sardinia or Ireland and a lot of the fighting you do will involve a fleet, you can invest (maybe tie it to the dockyard building, so it's organic?) in naval levies. They have a lot less downsides than merchant fleets (lower maintenance and free to raise, can shattered retreat to them if they're available in a sea tile, etc) but might not be worth it if you're, say, germany and don't have a lot of overseas ambitions.
And finally, a naval screen like the army screen, but instead of levies and men-at-arms, it's just a place where you can either rent merchant ships or raise your own levy fleets if you have them. the merchant fleets cost $ from friendly naval provinces, or $$ from neutral provinces. Your levy fleets are free to raise and are cheaper to keep raised, but have the cost of having to dedicate money and building slots to dedicated naval infrastructure. Maybe the AI would weigh it by percentage of coastal provinces or overseas holdings, and invest in it more the higher the percentage is?
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