Mantis page:
http://www.arcengames.com/mantisbt/view.php?id=14663From what I can see on the mantis and on these forums, nearly everybody wants a way to end AI federations other than killing all but 1 member, and here's my idea.
In real life, people who hate each other join forces for other, practical reasons, so the way out should not be influence based as many are suggesting. But in real life such federations can be fragile, as opposed to implacable and perfect as found in TLF.
The Hydrals should be able to find some information on why an AI federation has formed. It doesn't have to be specific (I.e. this race has #% more ships), it could be a general more flavor-texty thing (they respect their strong military, they believe they could benefit from their knowledge of technology, etc).
This information could be as hard to come by as balance dictates, ranging from a simple informant mission or a dangerous reconnassaince combat event.
The player could then use this information to attempt to disband the enemy federation. Maybe if one race joined due to the other's combat prowess alone, and that combat ability is eliminated the first race might leave.
This would be difficult, and the genocidal option would still be simpler, but this would be another way to interact with the universe and would add another layer.
For balance, this could also apply to the player. With federation points, we have specific reasons why other races are interested in our federation. Maybe too many of those reasons being made irrelevant could risk losing a member of our federation.