True, Battania and Sturgia have the short stick in the factions overview. I do put Sturgia at bottom though.
Battania has the best archer in the game but everyone else sucks. Their T5 infantry can't even hold their shields straight for shieldwall but they have good economy and their towns are all close to each other, they are easier to defend. Their problem is Vladia just being too good.
Sturgia is just a mess, their roster besides T6 Cav and maybe T5 Spearman is just bad, their economy is bad and their position is bad. Their towns have very little prosperity to generate money early own and half the towns in Sturgia are terribly positioned. Tyal is too far away from the rest, Varcheg and Omor are too open, very easy for Vladia, Battania and NE to take them. Without these three towns, Sturgia is reduced to only half their original towns and it usually happens very early in each campaign.
Also the AI doesn't know how to handle two wars in both sides at the same time for Sturgia. How many times they create an army near Varcheg only to send them to attack the Tyal area while a Vladian or Battanian army is going around in the area. And yeah, it's a shame diplomacy isn't in the base game (without mods).