I imagine it does - but it seems to be working for me. Some nations literally came crawling on their knees begging for peace ("all my treasury and become a client in exchange? Sure!"), others stubbornly refuse to give in besides being down to dregs against two full legions knocking at their doors. That seems fine to me, but yeah, it would really suck if the former never happened!
I do also agree with Fandir - after a certain point you begin to shift into steamrolling mode and become virtually unstoppable, like in all TW games so far. In the beginning of my current Rome campaign I was in serious trouble because there were more trouble spots than I was able to deal with simultaneously, but now that everything is running smoothly it's easy going.