Here's an example of AI mid-game passivity and the broken diplomatic engine. I am playing as the British. After having soundly beaten Cherokees, I made them into my protectorate, leaving them with Orleans and North Louisiana (they had conquered those themselves) + gifted them Texas.
They are my protectorate, but they're still at war with Spain (for taking Florida early in the game). Here's the onion: still about 30 years after I have gifted Cherokees Texas (giving them straight access to Mexico), they have done absolutely nothing about the unguarded Spanish province next to them... And we all know how active Cherokees are at the start of the game. It seemed, like something/someone had suddenly made them tame and lame.
I would understand that if they were bankrupt by paying me the protectorate fees. Far from that: they have 3 full stacks roaming their countryside + I've given them all the latest techs + cash bonuses every once in a while.
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