The game mechanics are what they are. We did what we needed to to survive. If this were made into a much more realistic game (or NES), the French/Swazi's could easily have defeated the opposing coalition, simply because we would have the resources and industry to field powerful defensive armies in an era of trench warfare. Considering we easily had the naval power to at least control the Mediterranean, as well as the fact that our resource base would be virtually unlimited, and the fact that literally every single territory we had was industrialized, we would likely have been unbeatable.
My point? You lost a war because of a faulty game mechanic that acted unrealistically in our favor. However, virtually every other aspect of the game was in your favor, and there is simply no excuse for your poor performance in the war. Given the game mechanics, you should have knocked me out of the war in one turn, and despite your poor planning, you almost did that, except for one lucky RNG roll. However, had my naval warplans actually been represented in the calculations during the naval battle in the North Atlantic, you would have lost that battle and never even reached the shore of Portugal. Take a look at a map of Germany after the first update. We would have had almost all of Europe secured (due to me still holding Iberia then), and had I actually exploited the game mechanics to their fullest extent, I would have knocked out the Germans in Scandinavia. In fact, I think my warplans actually allocated additional troops to the invasion of Scandinavia in the event I prevented an invasion of Iberia, and if that's true, I would likely have destroyed Germany anyway.