[@Gig] Meh. You count your fairies' war machines as being equal to a normal infantry soldier when saying that your two million is less than Avalia would have. I find that somewhat questionable. Even at only 1% of your population in the armed forces, that's two million armored steampunk-soldiers. It's hard to gauge, but those might be worth something like 10 normal soldiers each which means you still end up with more firepower than probably even me, and I was going to have my nation be the most heavy users of tanks and artillery.

In short I don't like the idea of you having 7 billion fairies because,

1.) That means 7 billion minds to work with, so 7 billion engineers, inventors, scientists...

2.) You have trolls to do your fighting and labor, so you don't need literally billions of fairies to cram into gigantic war machines to compete. Having both brutishly strong and big people and tiny yet smarter people goves you the advantage of both worlds; I don't think you also need the advantage of outnumbering every other nation combined.