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But fighting on at high WE should not just make you worse at fighting but also have lasting costs, so there should be penalties to other aspects of your empire such as happiness, crime, stability, maybe direct resource output, influence generation, diplomatic weight, etc.
Fighting excessively long wars despite high war exhaustion should be a choice, like in eu4, and it should make your empire slowly fall apart, like in eu4. Also, if possible, the war exhaustion penalties shouldnt immediately end at the end of war but should only slowly decay.