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Originally posted by Nerfix:
Rigth then, what does it add to gameplay?

The subject is twofold, IMO it's different in SP and MP :
SP : add variety to the game, as the player woul dhave to manage his relations with the others, say keeping peace with a nation while warring another etc ... But the AI diplomacy has to be good else the player will be able to easily abuse it.
In MP it's simpler : it'll allow players to give passage or join forces in war, without changing much the diplomatic aspects that are anyway handled by Messages and agreements.

I'd be glad to see some simple "diplomatic features" be available in MP, but suppose it'll be too difficult to implement properly in SP until Dominions 3 : Alliance of the Gods !