There is a lot of talk right now about faction differentiation. I think the discussions about gameplay-based faction differentiation are more important than this suggestion, but wanted to throw it out anyway because I think it'll help with the feel of the world even if it doesn't help with the gameplay itself.
The problem: I like what I have seen of the lore for WoM and FE, but I find that it does not manifest within the actual game very often. Each sovereign and faction has its own text block during the "setup the game" phase, but that seems to be where it ends.
A solution: something like what Firaxis did in Alpha Centauri back in the day... Mainly, when you research a technology, you get a narrated quote from one of the appropriate sovereigns that describes the technology (or at least it's relative importance in the setting) but more importantly, it provides some insight into the sovereign him/her self. Providing this extra insight every few turns when you researched a technology gave you a glimpse into your opponents and reinforced (or changed) your perceptions of who they are in a way that cannot be accomplished with a text block that occurs out of the context of the game.
I haven't played Alpha Centauri in years because the mechanics feel pretty dated, but I still remember the characters. I'm pretty sure it was due to having them describe the setting/tech in those small quotes every few turns.
I'd love to look back at Fallen Enchantress in 10 years and think, "Oooh, Magnar, I'm still mad at you for enslaving my people" or "Capitar, I could always count on your people to give me a ton of money if I brought an army to you gates."
Anyone else? Or am I just crazy?