I´d have to agree about diplomacy being useless, one will still end up at war with all the factions. The game is biased towards this by a) Setting the victory conditions to conquering 45 regions b) simply having a dumb AI.
To be honest I am surprised at how many things don´t actually work the way they were supposed to, most of them are core aspects of the game and the result is the lack of any strategy in what was supposed to be a strategy game. Look at the list: diplomacy, AI, characters traits, inquisitors, some of the units (cavalry, 2h), it is easier to say what actually works! The game is linear beyond belief, with an early rush the best answer for every faction.
I actually noticed this with many new games, somehow old games had better value and replayability to them, these days too much emphasis is put on graphics.
Having said that, I will still play the game because I enjoy the battles, even though the AI doesn´t really shine.
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