I think we all agree that dipolomcy in FE needs some work, but I would breifly like to mention one modifier - "Your army is weak".

During my current game, my power rating is slightly below the strongest AI (230 vs. 237), yet I have the above mentioned negative modifier against me in the foreign relations sceen. Yes, technically I'm weaker, but not by a material amount.

Now, I really don't care that much. If the power ratings are meaningful, it would probably result in a protracted war of attrition with the AI. - allowing another AI to coast to a win while we trade blows.

So, it would be in the AI's best interest (asuming it plays to win, and not just to block the player from winning) not to start a war with me.

So, my suggestion, would be for SD to revisit how that specific modifier is calculated.