I don't find it all that amusing CS. After all, the Archon was a royal wanker to the Magistrix back at the Star League Conference on Tharkad. Then chucked a hissy fit at the Canopians. The Terrans had the ol' Marian Hegemony doing the reach around on them at the same time, which went down a real treat on Canopus IV. The Star Adders have always treated the Magistracy above board, and while the Royal Palace is only too well aware that Addergrad wants to turn the Magistracy into 'CSA Inc', we are still an independent nation. But owing a far few chits (then again, some owe us as well).
The OWA/CHH merge came about for a number of reasons. A couple off the top of my head is that it hopefully annoys the heck out of the Draconis Combine. Second reason is that the GMs at the time wanted it. You've been a GM in a previous reincarnation of this game I recall (coz I also played in that game). And while I don't say 'how high' when I GM tells me to jump, I at least listen to them, before I pull out my get out of jail free card ('Sorry, I'm Australian. You want me to do what exactly?')
I'd like to see a number of independent periphery powers because all too often the IS realms are a bit pedestrian, but what has occured was more so due to past GMs helping their besties.