I think I prefer having it all under king's rule, with the smaller provinces/towns being overseen by a mayor of sorts. I was thinking ours can't be too small, but maybe one of two (or three) rivaling kingdoms, the rest being too small to really worry about. Racial rivalries would make sense. Could also be part of why the kingdoms are so distrusting of each other. 

That's fine, I can play the monarch ^^. 

Going along with that, I'm guessing they end up in the wars less for themselves and more in support of allies that have smaller, inadequate fighting forces. Maybe our kingdom is less inclined to believe in the stigma's, which is what really puts them at odds with the others. It's what makes our kingdom more willing to help out other races and leads to them being dragged into other people's wars. Just a thought.

Four base being earth-air-fire-water? Just guessing here, not sure what you're referring to in this case.