So true, that's why the real organized survive and the chaotic fade away after some time.
It is, BUT, I think it's better to give sanctioned alliances slight benefits against alliances who are not sanctioned. This will level down the various number of 20 - 60 people alliances in the game. Because everyone wants to benefit from being sanctioned.
Everyone (Well a lot of you) here's screaming that the 300 member level should be maintained as a requirement to get sanctioned.
But if you'd gave High NS alliances like the Grämlins and TOP a shot at being sanctioned, the only way to catch up with those insane high Avg Strenght for other alliances is to recruit.
This would make the game "fair" You can get sanctioned with a low # of nations, but it's so much easier to get the benefits of a sanction with more nations. Alliances will be recruiting anyway.