Joe,
All you say makes sense, and I'll admit that tend to tend to play the strategical/diplomatic side of the game with less intensity than I should just to get to the tactical battles and settlement conquests.
Actually the one time I got excommunicated in a campaign worked in my favor. I had a secure ecconomy and good balanced armies. Nation after nation sentcrusader armies against me which I easily defeated, but in doing so drained their resources of fighting men and leaders.
Cheers
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