Its an interesting solution, particularly the tax value moves as that would allow for much more concentrated warscore. But it does bring certain problems too. For example, looking at the HYW -- how in the world is France supposed to win if all the warscore is in London? In some situations, this solution might further exacerbate the problem rather than fix it. Similarly, imagine a Muscovy having to march all the way to Warsaw to defeat Poland. Or vice versa for that matter.
Although this is a creative solution, I think ultimately, this will have to be left to EU3. I really hope that it simulates de facto control over territory, as this would eliminate the need to always sign peace treaties and indeed eliminate the effects of player stubborness in signing reasonable peace treaties. It will be to everyone's advantage to sign one, although if the loser doesn't want to negotiate, the attacker may well hold on to all of his territories that it wants, or dispose of them however he may please. The problem will of course be balancing this
Although this is a creative solution, I think ultimately, this will have to be left to EU3. I really hope that it simulates de facto control over territory, as this would eliminate the need to always sign peace treaties and indeed eliminate the effects of player stubborness in signing reasonable peace treaties. It will be to everyone's advantage to sign one, although if the loser doesn't want to negotiate, the attacker may well hold on to all of his territories that it wants, or dispose of them however he may please. The problem will of course be balancing this