From the sound of it, it doesn't appear as though you engage in military RP, much less lead any form of government(s) on the server. I'm not denying much of anything you're saying nor downplaying your points, but if it doesn't concern you (and wouldn't bother you to begin with - these rules would give wars roleplay significance) - why throw stones? To me, this sounds like nostalgic Aegisian rhetoric of people who don't really play on the server, though I don't intend to patronize.
I, personally, have been leading the Orenian militaristic effort over the past 4 months. Mirtok and some other leaders of the former Bloc nations have thrown their support around this - people we engaged offensively back in those days. If I did not believe this system could give true spice to wars and gear them into something the nations of LOTC could maintain via simple cordiality, I would not have posted it on Aetosion's behalf.
Calculating the wishes of the server administration combined with various other OOC forces, not much choice is given to the militants of Athera, who - to hell with what it was like in Aegis 3 years ago - make up a very large, if not the largest, and very important slice of the LOTC playerbase today, here and now. You have the current, disgustingly outdated and unrealistic system where war claims require OOC consent and nations are free to lead forays against your people (a theoretical neutral, peaceful, magical academy, for instance) as much as they want and then promptly decline any retaliatory warclaims and hide as much as they like (or have the administration do so for them); you have, ideally for the militant RPers, a complete removal of the consentual warclaim rule and have those who consistently make a whine about what they call "faction PVPers" simply fortify themselves and take it in roleplay, as any militant RPer would and by god, just tolerate the gung ho RP of those they exasperate time and time again are not tolerant; you have this system favorable to any parties, militant or not, which attempts rather well to establish some IC rules that nation leaders can agree to follow with or without a sole, unbiased OOC monitoring party (such as shiftnative) and, based on its reception by people I have actually warred against, does appear to be within ease of reach; you then have the theoretical system you suggest, which would need to be laid down on paper before I could offer any constructive criticism beyond "I believe that would be /too/ realistic to the point of boredom for those directly involved".
This goes to anyone reading the thread - just consider for a moment the perspective of those on the other side of the fence. We who do military RP, irrespective of our nation or our character's race, despite being a very large and contribute portion of the server, are consistently told we are scum, that we are intolerant "faction PVPers who need to go back to darkage/otc/some other degenerate pvp server" and that we're only on the server to carry such out with an intentional dismay against peaceful, "tolerant", multiracial, magical RP groups.
These are nothing more than insults product of those shedding OOC tears for their loss of pixels on a minecraft server. All those insults are practically crammed down our throats, all the while we are told we must be tolerant of those who refuse to tolerate us. This brews unrest amongst the militant RPers who will then target such people who repeatedly OOCly insult and demonize them. It's a never ending cycle, but, in my opinion, it requires two things to break: for one, a system like this, and secondly, perhaps more relevantly, a look through, say, my perspective from folks like, for instance, the leaders of the Raine Academy or some other neutral RP group. Read the OP and you'll see that I can and do see through your perspectives - now it's time for you to look through mine. Let's pass this system through. Enough of this double standard. LOTC is not by default an exclusive order of peaceful, magical fairy tale RPers who believe they should receive priority amongst all other groups - LOTC is a conglomeration of many groups with many different RP interests and mannerisms. Tolerate none or tolerate all.
Simple as that.
Militant RP is not restricted merely to high elves nor humans; the dwarves have it, the Teutons have it, the orcs have it. More relevantly, the Empire is gung ho from the core. It has been for the past 3 months. Saying hello to people on the road or popping into a tavern doesn't count as really engaging yourself into a nation's roleplay. Read the inner human roleplay or Empire subforums and then seek one of the many militant groups out. Simple as owt.