A few observations on diplomacy.
Diplomacy has become more involved to say the least. I am glad to have the hints about how the computer views your offers. However two things that will have a big effect on how things go are visible so you have an idea what is going on, namely the relationship and reputation indicators. If you want cooperation from your allies you have to maintain constant contact with them, getting that first initial treaty and trade rights is not enough in Medieval 2. Just having your diplomat talk to them every couple of turns and giving them 100 florins will keep a very nice relationship and make it far easier to get military access and support for your cardinals to become pope. I would guess that when the computer offers you good deals then it is doing so to try improve its reputation or the relations with you. Also your reputation makes a difference in how willing nations are going to be to cooperate with you. I have watched France with a very untrustworthy reputation be unable to get or keep allies for any period of time. While others with mixed reputations will have 4 or 5 allies for a 100 years or more. I am not sure quite how you get your reputation to improve but I do know that attacking an ally will make you untrustworthy. These are some of my impressions of how diplomacy is working in the game after a week of playing it.

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