The Liura Arc was laughably simplistic -- not in its ultimate fall, which made sense, but rather in how morally one-sided the whole thing was. It presented Japan's first contacts as morally correct, but weak; and the Liura Kingdom as morally repugnant, but strong -- thereby making Japan the moral guarantor of the world, basically, by defending the weak against the morally incorrect, but strong opponent.
The northern Empire, for its part, is portrayed as militarily and technologically superior to its counterparts, but seemingly so byzantine that it can't take five minutes to dispatch a scouting squadron to check if rumors of the Demon Lord's revival were true (which gave me serious deja vu as a Mass Effect player: "Ah, yes, the Demon Lord. The ancient harbinger of doom for humanity. We have dismissed those claims."

). For an apparently hyper-competent and professional Empire, it's surprisingly dogmatic, racist, and inflexible. Which, of course, all serves to make Japan look good by comparison once the Topa Kingdom asks Japan for help instead and the rumors are verified.