''attack everything that move with impunity late game''
We are talking about the new world, not the Ottomans or HRE. If you imperialism 2/3 of France as a heathen, you're going to experience something a little different than "impunity" from nearby Europeans.
BTW, I don't mean they don't help their colonies (they usually don't help them effectively) I mean the DOW, thanks to an issue, means that I'm at war with the colony and not the motherland.
Overlord has multiple methods to interfere with such wars and the AI doesn't use them. It's the same rules that apply to wars between two colonial nations. This is not a case that the worst nations in the game are somehow "overpowered". It is a case that the AI should quit game throwing.
While they're at it, maybe they can make CNs that don't fight anybody at all stop finding their way into 1000's of ducats of debt. That'd be nice too, make them a little more competitive.
So long as we have this trash:
It's hard to buy that natives are the issue here. AI game throwing =/= issue with already weak nations. Fix the broken. There's plenty of broken, and the only broken WRT natives is that they remain the only positions on the board that utterly lack agency in their ability to progress and play the game.
That's the 3rd time Caribbean has been in such debt in one game BTW. It has never been overextended, has never fought a battle, and has only 0 LA provinces with right culture/religion. By itself, it has managed to put up ~1k in debt. It's hard for these nations to fight back when they're so busy shoveling money into the water.