I hope everybody knows that "from the people" is stated to be "tongue in cheek"
I want to praise you for the simplistic yet very effective diplomacy system in Hegemony. I think maybe most will agree that the diplomacy system isn't realistic at all. Having said that, I don't know of a game that does a good job of realistically portraying diplomacy. Diplomacy is probably inherently to difficult to design with today's technology. Negotiating borders, money, size of armies, complicated and ever changing alliances etc. must be extremely difficult. I imagine it would take almost a true version of artificial/conscience intelligence to design diplomacy correctly. But instead of trying to realistically portray diplomacy and inevitably failing like other games, the blunt monetary/economic consequences of diplomacy found in Hegemony works very well. I don't think it is realistic but the simple economic consequences of making/breaking truces and alliances cuts to bare essence of the objectives of diplomatic negotiations. The diplomacy system doesn't try to be more and it also doesn't inevitably become unrealistic like other diplomatic systems found in other strategy game. I thing maybe refining it would be fine if your team thinks it's necessary, but I hope you never change it. Though I think it would make more sense if the AI factions proposed truces/alliances to the human player more often...good luck with Rome.