I rather have flowing diplomacy and politic changes than sit and squabble about theoretical Role-Play that in the end is the same type of line of thinking such as: Yeah well, the minute you lead my Navy character to your criminal base, I can theoretically send the entire Dreadnought fleet and bombard it to hell, there. You are gone.
Instead, simply playing out these embargoes, or changes of politics in general, generates activity because guess what, it's new. It's not the same as doing X route every single day, or raid X faction every single day. It's new, never been done before, and it makes things interesting. I prefer this line of thinking, regardless of what is logical or not.