I have not tried the VH campaign setting yet, but I have similar experience on H. MTW 2 Diplomacy does make sense to me.

Quote Originally Posted by maestro

In my latest "coup de grace", I have literally negotiated global peace! Due to my massive armed forces I was making less than ten thousand cash profit per turn so decided that I needed peace. I sold a cease fire to Milan for twenty thousand and used that coupled with my two, unmarried daughters to broker a couple of other alliances which netted the result of every war ceasing accross the globe! I couldn't believe it! Shows what can be acheived when you're a diplomatic power-house who is trust-worthy, powerful and influential. Oh, did I mention that the last two popes have been English?

Diplomacy takes some effort but is extremely rewarding and adds a fantastic dimension to the game.