I don't think that's what would happen here. All this is wanting to do is restrict how low a nation can go to strike in a raid not trying to discourage war. Nations will still strike as low as they are allowed, it just won't be as low as in previous rounds. It just gives the tiny nations a chance to get started without having a comparative giant bowl them over. I agree with those who think it might lessen the number of inactives we see each round.
In connection to the current rank standings, I am curious to see the way things stand after the MI nations who gave up completely fall away. I'm not saying that it would knock MI down drastically, but I am curious to see its effects.