Well said, das..
Nobody forces it to be a monarchy, you can also control your domestic policies in NESing you know not just foreign, Scandinavia was a monarchy too in the beginning of this game. More than anything, a NES is a story, so if you want something to happen in your nation, just write stories about it and tell it in your orders and its done.
Thats why we have story NESes instead of board NESes; in story NESes we can do whatever the fudge we want (as long as the mod allows it). If it wasn't like that, why not simply go back to playing board NESes?