IRON is the second most powerful alliance in the game, no one with any sense is calling them weak. They just aren't powerful enough to turn the tide of this war. They are pretty much the last big hope for NPO & co., while Karma still has several cards up its sleeve, which together are greater then IRON in raw strength.
Not that i'll convince you of anything, its pretty evident where your loyalties lie and I don't really fault you for being optimistic.