Sorry it's taken so long to reply.
Re:_ghost_-They produce culture and autoproduce units, but that should be enough to get AI to produce it(similar to Knights Templar and Statue of Zeus in regular games).
Re: Wolfshade-By suitable government, you mean anything besides Despotism? All nations have a fairly good government, so I don't think this is the issue. I also don't think it's because of security, as there are cities that aren't seeing action, and are fairly well defended.
Re:scratchthepitch-I know, that always happens in the regular conquests. I really don't know what's causing it.
Maybe if I mess with the traits, or maybe give a minor benefit to each one such as makes one citizen content, it will work...
Actually, it's not the Loyalists who have this problem, only the Nationalists, so I will try to find something to explain this.