Here it is:
It's bad. I'm not quite as... erm... angry as ShinRa is, but I understand his perspective completely.
Ultimately, for the defeated alliance, it makes no sense unless it is the only option to keep the alliance from disbanding. Otherwise, it makes no sense, because if the alliance is at war with you and hates you enough to place you until a vice royalty, then they obviously do not have the intention of improving your alliance, simply removing people that may cause that alliance to oppose you again. I, personally, did nothing on CN except keep my nation alliance all through when GATO had a viceroy, because otherwise I was bound to eventually get kicked out.
The biggest problem, for me, is that it doesn't mesh with GATO. GATO is an alliance that believes in free movement and representation of thought and ideas. Even right before the war we had people in GATO who were pro-NPO (wanted to reconcile GATO and Pacifica) and anti-NPO (for obvious reasons). GATO was actually, in fact, somewhat swinging towards the pro-NPO sentiment when the NPO attacked us. NPO attacking us simply lead to more GATO members hating the NPO that otherwise could have cared less about the NPO. The Viceroy then proceeded to kick out anyone who publicly disagreed with him.
Recap: Viceroy didn't improve GATO, simply caused those who were the strongest voices against the NPO to be removed.