After game is over I will go back and check order of battle after that fatefull nuking of Iceland that sparked WW3. I am pretty sure odds were against us even without counting your countless Modern Infantries. I wonder why you never had a happiness problem -- I tried to draft myself -- but penalties are just too harsh on Marathon...
Well you have to remember that when you draft you lose 3 happiness, but you also lose 3 population. So effectively everything gets lowered, and as long as you aren't growing your cities, it has a happiness-neutral impact. Obviously this means the total units that can be drafted is limited... but for a short-term emergency defense, it surely works just fine. And on marathon speed, no cities grow very fast anyway, so it wasn't really a worry. Long-term its not sustainable unless I am constantly expanding and adding happiness resources, or increasing my culture slider. Which I did have up for a period of time until I needed to max gold to rush-buy.
It also helps that I consolidated the Muslim countries, so I had tons of resources, when added with some corporations and a little culture ratio, kept my happiness super high. I only started having happiness problems at the end when it didnt matter and I didnt care, I drafted all my cities down to as low as they could go.
Also, the globe theater city is a crucial drafting city. No happiness problems, ever, so as long as you have the population you can draft. Lagos was my globe city, and I was about to start converting towns to farms to make growth as high as possible, which would have made it an infantry pump. Too little, too late though. Karachi in Pakistan and Jakarta were also good globe draft cities that I used until they were nuked/taken. They also had the modern fisheries, so that pop grew amazingly fast. If I wasn't constantly in a war this game and could have prepared properly I might have been able to put together a HUGE stack of mobile infantry!
It was funny though, once Pakistan was nuked, the Globe Theater was destroyed, and all those happiness penalties that were hidden suddenly appeared again. So it was the unhappiest city in the world. It was like 8 pop, but something like 8 < 58 unhappy citizens!!! Even without the surrounding land being radioactive, that city would have staved to death!