I will often use forced diplomacy to role-play. Since RTW diplomacy doesn't accept ceasefires, I'll use forced diplomacy to give me them. However, I only do so I feel if the nation would have realistically accepted the terms. Same for trade rights and some alliance.
I'll sometimes use it to force wars and end alliances as well. If you force allie with one side, then wait for two nations armies to be next to eachoter, then attack the nonallied side, the two nations will go to war. You can then force a peace treaty with the one you attacked. Most likely, the two nations will still be unlikely to go all out war on eachother, but they will have border skirmishes. You can do similar by allying with someone and then attacking your allie's allie, they will then break their alliance with their old allie to maintain their alliance with you. (The AI always sides with the agreesive side if forced to make a choice.)
Forced diplomacy also saves a whole lot of trouble in dealling with AI management as others have said.
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