In Little Rivellon with 2 insane AI against and 1 normal AI ally I can just build a transport, carry 5 grenadiers to the nearest capitol (while doing as little as possible to impede that enemy's progress) and take it with some support from cards. I take it on turn 4, I get the rest at the beginning of turn 6, and since the scattered forces turn to my side I have more units than I would have had without throwing my 5 grenadiers into battle.

Those campaigns tend to end in victory around turn 11 and I could always autoresolve all the way.

Now, autoresolve is more sensible, and it has become even easier, because the AI doesn't defend anything with significant (enough) force. Yeah, capitol has loads, but I attack with 6 units + mercs. It needs loads + loads. Or he needs to intercept that ship at sea. Use his mobility (especially when he acts before me) to stall and establish a stronger defense, maybe.

I wonder what would happen if the AI went at my throat with the same fervour.

I'd be perfectly happy with all conquered units and countries turning neutral, by the way. It would make the rest of the game less of a given. You'd actually have to take the time to seize control of territories, and the other enemy may be able to claim some of it, and salvage some forces. You still eliminated an enemy that could participate in battles.

Maybe that could be an option, at least, like the RTS recruit costs, so that you don't instantly double your empire on turn 6.