I think it is. This runs into another problem with the game. Your goals in game level, war level, and monthly rankings are achievable in months. Players who have been around for awhile have difficulty finding new goals to achieve. When there seems there is nothing left to accomplish, players get bored and leave.
Developing large countries is one possible goal for these players, but as the top end is lowered, the finish line grows closer. I have taken a number of breaks from the game out of boredom. They now grow more frequent, and longer. I have not taken any significant action in game now for 8-9 "real" months. I check the forums to see if there is anything interesting coming down, I extend my entities, and that is about it I have hit the maximum display value for assets, the cash cap, and now the new population cap in about 12 countries.
My real concern is that the game can not weather the loss of too many experienced players. Take the recent discussion regarding military expenses. I have successfully explained it to players who actually have fought wars. You acknowledge that we lack sufficient detail to even sort this out. How many players figure out things like contracts effecting country spending limit differently than regular market purchases? By the way, is this even intended?
The question is simply. Can the game survive a brain drain?