I can see how it must be annoying for the old western kingdoms, but it has made it more interesting in my part of Dwilight. It's early days yet, with a lot of time for things to become stable, but having extra enemies to fight with the now limited land resources is a good thing IMHO. Luria used to own rather excessive amounts of land, now it has to fight or negotiate for large tracts of it, along with the normal "outside" pressures. It might end up reclaiming most of it, but that still brings the political side of things to light.
Taking in the refugees has been interesting as well. No-one really knows where any particular character's allegiance lays (did we ever?). I don't like it that much of Dwilight wasn't affected much by the changes, with status quo more-or-less being maintained everywhere else. Even around LN it looks like it might go that way, with the big boys staying big, and the western realms having to fight tooth and nail for simple survival.
So I can see why people are cranky about it still. It might be interesting for me (yay to semi-forced wars without much travel time. LN could be boring as hell in peacetime), but if the roles were reversed I'd probably view it differently.
Was it good for the game? Maybe. Only time will tell. It's actually nice having realms and knights be a little poorer. Jockeying for position, under-hiring, vaguely caring about battle results, etc actually became important and worthwhile now. A constant chance for war or peace is good as well. I'm sure there were a lot of wars that were never fought just because people couldn't be bothered waiting the 3 day travel time to even initiate one. They may have had a legitimate reason for fighting, it was just too much time wasted for half a kingdom's worth of players to want to travel anywhere to fight one. With the other option being: Do nothing, get rich, RP a bit. War was like traveling prison, peace was more interesting but less dramatic, and being a monster/undead hunter could earn you honour and prestige faster than actual fighting. I hope the changes still allow many sorts of players to flourish and be interested, with everyone having their niche in the game. But it is called *Battle*master for a reason, even if wars aren't necessarily won or lost by fighting, or power or wealth gained by use of arms. But it can be, and it's easier and quicker to do now.
Honestly, I don't know how Morek doesn't die of boredom most of the time. SA is purely a creation of that. It gives players something to do when there's nothing else happening. With half of Dwilight mostly unaffected by the changes, this looks set to continue.