I'm still convinced it's drama. They maybe watched 'This is Spinal Tap' and decided to give it a whirl. cJ still believes in game theory so I think they have long term plans.
If I'm wrong, and that's not a stretch, then it's bad in the short term. In the long term, each should build competitive top kingdoms and challenge for the crown. We must remember that every age Pyro wanted to play in the top they held top 5.