I don't know why it is always one or the other... we can have both, it worked in Warband too, but it wont be all fixed in 3 years, they re not a studio with 1k people working on gamedev.
People always want different things. But why should the people who bought the game on the promise of a working and enjoyable multiplayer be left out. Do more people play singleplayer? Sure. Does that mean ignore MP entirely? Isn t that a bit selfish? On events sometimes 500 ppl play on one server. Generally you always have 300 people on from morning to evening in MP, so there are people and there is potential in MP.
Also arguably mods made the warband SP experience much more enjoyable, pretty sure they will with BL too. One could even argue, people should download the mods they prefer, instead of TW adding content for SP, because everyone wants their own gameversion and TW should focus only on bugs and MP fixes. However:
I would say fix both. Is there a Diplomacy Mod? Sure. Still TW should work on fixing this imo, because it is SO basic and they have the team and resources to achieve more with their engine than any modmaker and make those things work, just like AI that makes sense and is less suicidal, workshops to upgrade and many other things already suggested.
Actually TW devs shoot out fixes almost every month. They cant fix everything and if ppl understood a bit about coding and gamedev, they d realize it is not just writing a few lines of code, clicking 'add' and then its all working. Even before you start you have to have a plan what you start fixing first, so that you wont have a problem adding a feature that is being requested later on. (and there are hundres of requested features...)