Gah, I'm tired. Just helped deal with an Agony Empire dick-star last night... By jove! I think I've figured out the current situation with sov warfare. The current sov system is basically recreating trench warfare. At it's finest...
Like others I'm not sure how to fix the issue to make it a more engaging endeavor. But some look at the current situation would probably not be remiss.
1) Trench warfare may be clinically interest but it definitely lacks a certain "fun factor". There are plenty of WWII games out there. How many ground WWI games do you know?... That's a lot isn't it? (your sarcasm meter should need a new fuse now).
2) Fleet engagements are fun, Blockades are not. Plus we've got the issue that we're a game. We can't force people to play 24/7 like the poor saps manning the ships on blockade duty in the real world.
3) Raiding is fun, interesting and useful. But the way things are currently setup the only thing to "raid" are unlucky saps who aren't paying attention to what's going on. The only damage raiding does is minor and indirect.
There are other issues (it's complex) but those are some statements about the current state of the game that I think hold more than just vapor. The problem is sov warfare has degenerated into trench warfare. Now the problem is that the solution to trench warfare (at least on more than the tactical level) turned out to be technological. CCP controls our technology. So until we have something that re-introduces maneuver warfare at the sov level back into the game, we'll be stuck with this simulation of world war I that is the current sovereignty system.
Brain still fuzzy, will work on objectives to get out of this situation later.