It would be hasty to conclude that the Diplomacy system is broken if it were based upon a single illogical action by the AI. But its not, the stories of the dumb actions (or lack of actions) by the AI are numerous and my own testing has shown that the Random DOW's are just that, and are not influenced by logic, diplomacy, geopolitic's or the even an assessment of likely success.
The inability to get an AI faction to response sensibly to its current situation, its failure to act to try and minimise a threat or maximise an opportunty, and a general failure of the AI to understand the basic elements and factors that contribute to the survival and prosperity of the factions it controls, all indicate that the system is broken.
What we have instead is a 'player hate routine' the sole purpose of which is to ensure that the player faction is kept in a state of pertetual war, regardless of what strategy that player happens to be following or what the diplomacy system indicates the player factions status to be.
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