Yeah, we don't even consider that an exploit due to the way the recruitment actually breaks down. If you have a level 5 regional MIC that recruits the same units at level 5 as it did at level 1 before your government-swap trick, the only difference is that you spent a lot of mnai on the regional MIC for no clear benefit. You could consider that a role-playing thing, as it won't give you any substantial edge (barring the occasional, rare exception).