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Unification is, as you said, really not worth it for humanity, but it can be useful to you, granting you more stuff for a lower cost while also keeping some good countries away from your enemy's hands.
In my current game I've unified the EU and made a federation with the Russian federation and EU, I was also holding the exec branch of the US to keep those nukes away from the servants and dominion (which have held the other 2 and 2 branches of the US for a decade).
Eventually the servants have made us research the separatist movements, so I researched the end of america, split everything up, abandoned every one of those other nations and just kept main america with the 30 nukes for a much lower cost and let the other orgs fight over the scraps.
I've also released the UK, to get access to the tech to restore the commonwealth as I build up every mission command in english lands (12 dev from england and 20 from the EU instead of no england and 21 from the EU) and I am planing on re-joining later, also released itali to fully develop their lands and I'm going to annex them back with all the mission comands later on.
tl;dr it depends on what you want to do.
Federation is the intermediate step between countries being Allies and being Unified. It's essentially a faction or bloc that shares resources. If one country in your Federation produces a lot of boost (Kazakhstan) and one does not (Russia), Russia still gets a lot of boost shared by Kazakhstan. Countries must be Federated for a certain amount of time, have a claim (either through game start or by various technologies), and you must have total control to Unify.
This can be bad for Miltech, Cohesion, GDP, etc.
I'm kind of rethinking my strategy about unification. I don't think it's 100% the thing to do all the time.
For example, I've reunified Korea. Now I have 2 atomic age armies, instead of 1 atomic and 1 information age. The country now has low Cohesion, and growing Unrest.
I think Unification works out better for countries that are very similar, otherwise it feels like your dragging down a good country with a bad one. But I haven't done the math, maybe output numbers-wise your still getting more out of the countries per the control point cost.
As for the benefits and disadvantages of Federations and Unification, Federations pool all their funding and boost income and give every member a weighted share of the two pools. This lets you have a single large nation with a few attached "smaller" ones that can provide funding and boost to more controlled locations. On the other hand, this means a small nation that doesn't provide boost or funding in a federation will leach a bit from all the others, making it necessary to take the entire thing to get the full pot. The most pressing advantage, though, is that so long as one member of a federation has a functional space program, every country in it can develop Mission Control even if they don't have a space program of their own. The downside is, as stated already, that a Federation takes more CP capacity to maintain and the smaller nations are easier to steal.
As for Unification, there's a few major benefits: the biggest and least obvious is that non-numerical attributes of the constituent nations (particularly nuclear status and whether or not they completed a space program) are incorporated into the unified nation. This means if, say, you have Panama complete a space program, then unite it with Guatemala before the latter can develop its own program, the resulting country will still have a space program. I believe this works in reverse as well in that, if a country with a space program "fractures" the breakaway may also have one, but I'm not certain. The most obvious benefit to a unified country is also its weakness: the larger economy makes the CPs naturally resistant to councilor actions, but if lost it makes them particularly difficult to retake. More importantly, when two nations unify, some of the CP ownership carries over, which means that if the Servants have a CP in Germany and you unify it into the EU, there's a chance that they gain a CP in the EU. On the other hand, the reverse can be weaponized: if you have a nation too strong to easily regain a CP in, you can fracture it into smaller nations and clear it out that way at the risk of losing more CPs.
Investments: 9 + 7 became 9 (you loose)
Funds: 94 + 29 became 123 (remains)
Science: 65 + 24 became 79 (you loose)
Boost: 2 + 4 became 6 (remains)
Controls: 9 + 7 became 16 (remains)
Admin points: unification freed 13 points, it's close to the points for the smaller country I merged (15 points country merged into 60 points one).
Mil-tech: 3.9 + 3.2 became 3.8 (you loose, still some armies may benefit)
Also: Unrest and Cohesion seems going closer to average. GDP remains. Unclear for Government, probably it remains the same as it was for the Leader of Federation.
So you loose some Science, what's a problem. Also the big issue is Investments. Independent countries could develop FASTER than been unified. The advantage for Unification is certainly freed Admin points, while getting most of the merge country. And also less countries for Defend Interests (your Council actions are very limited after all) and Advice. Advice however impacted by less Investments, so it's barely an advantage. Also I believe multiply Advice actions on the same round against the same nation do not sum up (at least verified that for military bonus).
And advise.