I second every part of this.Just a few more thoughts on this.
You're right that you could combine all the different factions' forces and wipe us out. However, it's unlikely you'd ever do that as it wouldn't be realistic, unless of course we were really dumb and just went around picking fights with everyone at the same time.
I think there's a lot of scope to make the game richer using the hotseat function so I wouldn't give up on it yet - for example you could play out realistic wars between factions on our borders, you could develop their infrastructure in a sensible way (like a human would do) so that they become more of an implicit threat to us, things like that..best thing is you can dip in and out of it depending on how much time you have.
You could even use your god's eye view to give us snippets of information about the outside world, a diplomatic report if you like. I know I'd enjoy that and it would add to the immersion and give opportunities for roleplay.
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