I've read the in-game source materials and I admit that the empire was in tatters, but with hammerfell fighting the thalmor to a standstill and then pushing them back they wouldn't have had the resources to go defeat the empire again. They would, in fact, be figthting a war on two fronts.

It's fantasy so I guess it's pointless to speculate (but I'm doing it anyway). What do you guys think. Was the White-gold Concordant a mistake or did it save the empire?

Also, at this point I think the Thalmor would have agreed to less severe terms. Why did the empire go with the original demands instead of making them give *some* concessions?

Probably not enough to invade the dominion in Alinor, but they would be on better condition.

I think it was a major mistake. The Dominions army was in worse shape than the Imperial Legions. Sure, the Empire had no realistic option for invading the Dominion, but they did have the military advantage and should have negotiated better and more even terms in the peace threaty. Sadly Titus Mede 2nd lost his nerve or had become so weary of war that he gave in to almost the same demands the Thalmor gave him to not attack in the first place.

The redguards did.

Basically this. They probably won't be able to invade Alinor (the protection are rumoured to be intervention of psijic but that's rumour no real proof), even if they succeed, they will be a battered nation but they will be on better condition, they would still have Hammerfell and Skyrim is not ravaged by civil war.

This, when I found out the conditions of the peace treaty I was like "Who the hell negotiated this treaty?" My only experience with diplomacy is in video gamings and salary negotiations for jobs and I could have pulled something better out of it.

No. They would've gotten destroyed.

The Redguards almost defeated the Dominion before the Empire forced them to agree to peace. If the Nords, Bretons, and Imperials united behind the Redguards in Hammerfell, they could have won the war. Or at least not have sold out by giving up Talos.

Well, granted the thalmor probably bluffed, and the empire doesn't have the blades anymore to really know the dominion condition.

And we're loving it!
To be honest, I thought the Empire should have gotten better terms. They did not need to make Talos worship illegal.

The Empire certainly could not even invade Valenwood or Elesweyr after the war but neither could the Old Mary Dominion could invade Cyrodiil after the war either. Titus Mede should of negotiated a peace treaty that would be more fare to both sides.