Also there's the issue of highly flammable death balloons, but at least those were based on a real invention at the time, using relatively less expensive materials and whatnot.
It's worth noting that Avalonia put a lot into the development of these balloons so that they don't go like the Hindenburg. Avalonia's got the VTI and a system that encourages development that doesn't come at a human cost (also the real life airship had measures taken to prevent its own operations from causing it to burst into flames, no reason why Avalonia's can't do that and more).
As far as Avalonia getting a star "for declaring war on the PNP", that's pure fiction. During World War I, Avalonia revved up its war machine, increased the drilling frequency of its militias, improved its military, logistical, and communications infrastructure, and increased the size of its standing army. That's where that star came from. It could even be argued that it could still be four stars, since Avalonia sunk plenty of assets into making sure that it didn't remain a solely Avalonian operation, that local forces did a lot of heavy lifting to reclaim their homeland with Avalonian backing. I won't argue that Avalonia experienced no casualties or anything like that, just that Avalonia got that star legitimately.
With Romekate forces maintaining their front, and native forces making good progress, Avalonia scales back its direct involvement in the Arconian Civil War, specifically by bringing home any militias in Arcon, along with the majority of the regular infantry, leaving behind special forces and the growing Avalonian Foreign Legion to aid in combat, and a number of sappers and scouts, as well as a few airships, to provide aid on the logistical, technical, and information fronts.
Returning Avalonian troops, both regular and militia, are given a good leave, and regulars troops also receive a small bonus, with priority going to those who fought the most in Arcon. Troops are welcomed home as returning heroes who fought for a just cause. Families who lost members are given an Avalonian flag, a small sum of money, and a letter expressing the deep regret that their man made the ultimate sacrifice for his country.
Chancellor Hall begins to turn the political wheels to allow a broader range of individuals to vote. He views it as wrong that some men who gave their lives to defend Avalonia's ally, not even their own home soil, were unable to vote because they did not hold property. While he favors increasing the breadth of those able to vote, he intends to do s modestly, and in a way that would prevent populists and demagogues from taking advantage of the people to the detriment of all. This isn't a motion in the ANA or anything formal yet, just the beginnings of a change.
Avalonian settlers in the region that's now Decepticon's nation return home.