Actually reading another ongoing thread indirectly answered my question and that is... Civil War.
Getting excommunicated not only puts a neat bullseye sign on your chest but it also reduces your influence substantially as most Catholic nations cancel their alliances with you. Your reduced influence and prestige may lead some generals or upstart Princes to have thoughts of ruling themselves. Suddenly my thousand men stacks of armies that have been expanding and defending the empire don't seem so assuring.
Damn, I love this game so many different dynamics involved... It not only requires you to understand the Art of War but also Machiavellan principles of political intrigue. Since I cannot just attack my neighbors with impunity I am going to have to resort to encouraging revolts, bribery and tempting them to attack my rich, underdefended provinces so that they'll get ex-commed and I can attack or launch a crusade against them...
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