The war on the Thalmor I can accept because it's a war they started. Defensive wars are okay for me and necessary, but inner strife over who gets to worship what god is pointless IMO. If the Stormcloaks would just shut up for a while, tag up with the Imperials against Thalmor and after ultimate victory THEN wonder what's wrong with the Empire. Not before. Now the civil war just serves the Thalmor's goals and it's easier to take out a small isolated kingdom and weakened Empire than one that is united.
The Empire signed the treaty because for all we know they were losing.
Religious Wars are a common thing in our history, there still going on to this day. The Stormcloaks could have teamed up with the Empire, then go after them, sure. But why would they? Nords followed the Empire into death to defeat the Thalmor and instead turned around and signed on the dotted line, calling it a peace treaty.
Any Emperor should have know that signing such a document would cause strife within the kingdom, especially with the Nords since most revere Talos not just as a god but as a hero. I doubt the Empire was suffering in terms of needing people to fight the war with the The Thalmor, I believe what they lacked was military tactics.
The truth of the matter is the Emperor was hoping the treaty would solve all the problems and make them go away. But what the Emperor did was play right into the Thalmor's hand because now the Empire is far worse off then it has been in a long time.
I believe in peace too. But the Empire cares more for power then peace. Your tortured, jailed and even dragged off to die without a fair trial. Then when your asking the same people who stood up to the Thalmor, to go along with ridiculous new rules, that is not peace.
The Empire wields fear like a hammer to keep their subjects inline, some people choose to get hit and other choose to duck.



