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This was always annoying to me as well, and the AI seldom rebuilds forts once they're lost this way. Start with a country that's +3, and 10 years into the game you're back at 0.
I don't think that slider actually relates to defence and offence. Maybe if defence increased defence, and offence increased offence, then it would. But it doesn't.
It should be renamed freeforts->pointless general bonus slider.
Offensive is good for swift wars won on the battle field, and Defensive for long siege wars. I like Offensive, in some circumstances, but that event is really annoying with -5.