For many players, peace conference is an annoying part of this game, the results of these conferences are always unpredictable and unlikable. For example, Italy usually tries to take Scottish land in earlier turns rather than Egypt, Algeria and other Mediterranean states. These exclaves not only makes the post-war map ugly, but also makes more difficulties for these AI nations to defend their new provinces.(while they are already too stupid to protect their mainland from frequent naval invasions)
So, I think it is a reasonable choice to force these AI nations to take states closer to their capital and make these farther nations puppets. While the cost of taking a farther state should be higher than these closer ones, the cost of puppetizing a whole country should be lowered, this would be a cool and realistic way to solve the problem.
Also, IMO, the Yalta Conference could be a event chain that leads to a more historical/reasonable partition of the post-war Europe rather than a single event which only leads to the fate of Germany. These changes are probably easy for Paradox to do in further updates and they can really make the game better.
So, I think it is a reasonable choice to force these AI nations to take states closer to their capital and make these farther nations puppets. While the cost of taking a farther state should be higher than these closer ones, the cost of puppetizing a whole country should be lowered, this would be a cool and realistic way to solve the problem.
Also, IMO, the Yalta Conference could be a event chain that leads to a more historical/reasonable partition of the post-war Europe rather than a single event which only leads to the fate of Germany. These changes are probably easy for Paradox to do in further updates and they can really make the game better.