I have no problem with small factions having a shot. Westphalia, Saxony, Hannover etc should all get a chance.
I remember Aragon once conquered half of Europe in M1TW.
So yes France should have their teeth kicked out by a smaller nation if that's how it turned out.
This is afterall not a historical game but a what-if type of game. Powerhouse in one game and a weak pathetic nation getting pushed around by minors in another.
That's how Total war should be like and so far that's how it is in ETW.
Now if only we can get the UK to join the fray we will see some really interesting and hopefully hilarious results.