Cilia pretty much summarised what I was going to say.

Basically fighting would have been counter productive. The only reason any of our allies fight is to buy time for others to escape.

One of the core points of these events is that they have striped us of so much of our support and left us effectively pariahs. The Monetarists very effectively set us up and put us into a position where almost any action we took would just make us look worse. That was the point. This is our Empire Strikes Back. The bad guys have won big and we have been knocked back.

That is a good thing. Why? Cause the story isn't over. It means in Heavensward we can have our Return of the Jedi and it will be even more satisfying when we bring Ilberd, the traitor Braves and the Monetarists low.