It'll always be lonely at the top, it sorta comes with the territory. Besides, thats not going to change by forcing war kingdoms to grow, they'll just find other to loose their extra acres, ww/honor kd's are rarely interrested in fighting anybody that could actually resist and land/nw kingdoms aren't interrested in fighting anyone who could delay their whoring by more than 5 minutes, unless it's another land/nw kingdom since then there's the chance to screw up a competitor.
I don't see how limiting people's options are gonna stop the deterioration, if you funnel everyone towards a single goal it just means that a lot of people are going to loose their crowning chances and grow bored/disillusioned and leave, after all most kingdoms see little value in #2, it's pretty much either crown or nothing.