I have two questions concerning this.

The first is, If you have taken all the land of an opposing nation what happens to them? Do the start out somewhere else to be taken again later or do they stay in game and look at their once beautiful capital and nation?

The second question is, if you control one or two enemy capitals is there any kind of increase for holding them? I know that the enemy receives a lot less then he did, but i want to know if an hostile nation gains any extra profit from it?

1: They're out of the game, but they can join and start a new country elsewhere (just like a new player).

2: No, you don't gain extra for holding other capitals. I think that would make a country that's already defeating people and just give them even more power.

that makes sense i keep people on equal footing