Considering cybernations is supposed to at least attempt to simulate reality, the idea of encouraging massive nuke-wars is idiotic. There are still nuke-wars. They happen. And they hurt everyone, as they should. They're the last-resort weapon that we turn to when we must.
As in real life, the NS boost from nukes provides a definite aura of national superiority. The nations today with nuclear weapons maintain the greatest prestige in the world--even when they elect a monkey president.
I think the CN staff did an excellent job in simulating this.
And given that the WRC lets you buy 2 nukes/day--and that defensive spy arrangements can protect your nukes, and don't forget the hidden nuke silo--they're not merely spied away in wars, even if they are the #1 spy target.