I completely agree with you.
IMO, each faction should have some long-term targeted region, instead of desiring to own every settlement. Like, Vlandia to have "Greater Vlandia" dream, consisting western parts of Battania, Western Empire, Aserai.
Sturgia would have a dream of taking control of northern territories of Vlandia, Battania, Northern Empire.
Khuzait would have a dream of taking control of the parts of Northern Empire & Southern Empire until they reach foresty lands of Battania.
Aserai would have a dream of taking control the lands around the lake that i don't know it's name.
Empire factions would have a dream of taking control of the lands of other empire factions.
Factions would stop advancing after they take their desired lands, and then try to hold them by defensive wars, or by investing in them to increase loyalty of settlements, so that they won't lose them with rebellions.
All-out-of-war for the sake of genocidal world conquest isn't fun, and it's kinda dumb.