If you're looking for a module that makes small countries win, you're gonna be looking a lot longer, mate. I never said this module is perfect. It's not. In fact, I like a mixture of V1 and what we have now, but I think that limiting the gold aspect would make things far more fair. This module doesn't promote teamwork even a little bit, there's no real mechanical strategy like in V1, where a president could retreat regions, start blocking RWs, could create initiative locks, etc, etc.
Another game I play handles it very well, I think. You start out with 10 food limits, or 500 HP, and 10 gift limits for up to another 500 HP. Obviously, the amount of FFs you get in all depends on the quality of your food/gifts. A Q5 house adds 5 food limit daily, and a Q5 estate adds another 5 gift limit, creating new industries in the economy, and enabling business owners to move more products daily. Weapons are one use items, like V1 was, which makes owning Q1 gun companies pretty lucrative. Limits in how much you can fight every day creates the need for teamwork, while their military module has many things that eRep doesn't, such as useful DS systems, creating debuffs on attackers by cutting off their advance, etc.