Oddball:
Alongside two other minor changes (the Dragoons stay with the Clans when they return in 3009, and the Clans not showing up until much later),
That's one of the things I had in the initial post, and is likely what folks are building off of when mentioning the Dragoons.
Merging two realms, if it can be achieved, is always preferable to simply allying yourself with them. The problem is that no two realms could merge willingly that are flanked by another. You have to go across the divide. There’s too much bad blood for that to ever work.
Merging realms certainly comes with benefits. Does it outweigh the potential problems? That's the question. And Katrina's initial proposals were not outright mergers, but peace proposals. Through later negotiations with Hanse, they certainly became a merger. That doesn't mean that Ian would feel the same way, as he doesn't have the immediate problem Hanse faced by having no heir. That was what I was thinking more of. Without the need for a dynastic union right that very moment, perhaps the talks take on a much slower tone. Start with improved trade treaties, favored nation status, open up the Lyran and Davion military markets to each other in a big way. Throw in some non-aggression pacts, maybe a few simple shared defense clauses or trading off successful mercenary unit contracts. But this would take place over a longer span of time, since Hanse is waiting in the wings, should Ian fall. It might actually lead to a stronger FedCom, since issues could be worked out in advance if the pace of the union is slower to develop. Just some random thoughts.