Well it has been along time since I put my two cents in so here it comes.
This is just WWII played in a different way. Instead of Germany (Rheinland) it is France (Gallia) (trying not to laugh) kicking Bretonia's butt.
So what is the solution going to be you ask? Well it will be three fold.
1) Corsairs and Outcasts will finally realize their mistake in blaming each other and "makeup" and form the Hispania house and go through the back door of Gallia (Lorraine) and start kicking Gallia but since they overextended and left their back door open.
2) Liberty will split in two. You will have a Northern Liberty and a Southern Liberty.
Southern Liberty will continue the fight against Rheinland after Rheinland refuses a peace treaty. They will then join up with the Red Hessians to help them takeover most of Rheinland.
Northern Liberty will launch an offensive into Tau 29 thru the newly found jumphole from Yukon to Tau 29. They will get Kusari to join them. If they can get them over their new form of pacifism and back to there waring ways.
3) Well. After being inspired by Northern Liberty and the new Hispania house putting the hurt on Gallia. Bretonia starts to really fight back and lays Gallia open from the third front. With the Council still helping from...well where ever they are.
Just my thoughts. I hope I did not let the cat out of the bag. Hehe