^I don't really think this is where the game is going. Garlemald was a Republic before it became an Empire. Actually, the lore book says the Garlean Senate is still around, it's just that their power is so curtailed by the Emperor that they functionally have no say in government.

As for the other nations... Doma isn't going to be a democracy, full stop. Hien is supposed to be the leader there due to his birth status, which is one of the main reasons everyone is backing him in the first place. He also happens to be a legitametly a good leader, so things are more then likely going to turn out fine for Doma. Other then Ul'dah, and Ishgard, the other nations in Eorzean don't want/need to be democracies either. Gridania will never be a good candidate for a democracy The reason why the Padjal are "in charge" of the city's government is because they're the only ones who can mediate between the normal Gridnians and the Elementals who are the ones who are really in charge of the Twelveswood. Wanting a different form of government isn't going to change that. If Limsa Lominsa tried to be a democracy... pirates... let's think about that for a minute. The reason why Merlwyb can get away with the changes in goverment is because she's super aware of what Limsa Lominsa can and can't put up with. The second she deprives everyone else of the literal race she won, pirate fleets aren't going to have a reason to back her current government. Also, the time-bubble. Merlwyb's term isn't going to be up until after the game is done technically.

Plenty of peace agreements work well enough in real life with out everyone being part of one country anyway. Look at medieval/Renascence Europe.