I have had a faction offer peace one time. That was France and to except would be to abandon an ally. I didn't share a border with them but I was still a bit surprised to get the offer.
I had one faction accept peace. I had been at war with them for 75 years. It was Austria. They had one province left and I had destroyed all their regular troops and had the citizens under siege. I had offered them peace at least 30 times and they finally took it the turn before they were toast.
No other faction ever excepted peace regardless of the terms in any other campaign.
I have tried what you spoke of to make peace, but it never ever worked.
Most recently I killed off Sweden after destroying a fleet and killing 5 of their 6 stacks in one turn. The last stack only had one partial cavalry unit but retreated beyond where I could reach it, and the last region was under siege with only firelock citizens in it.

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