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I think that's the route root of it. It's trade per se that is simply too strong to begin with, not the boost that Protected Trade gives it. Almost every other mechanic in the game has some scaling built it, where the more you do it, the harder it becomes. Eg, every time you get reputation from resolve, the amount of resolve needed goes up. Trade needs something like that to balance it. Something like, for every 100 ambers worth of goods you've sold/traded, the amber value of your goods halves (exact number needs to be balanced of course).
That would make trade a complement to other strategies, and even the main strategy at times, but not the default way to solve every problem.
If it's still to easy for some people, better to just think about another 10 additional levels of prestige...
Of course, rather than nerfing trade, you could boost every other mechanic... but that seems a lot harder to implement than some inflation-like mechanic were the amber value of your goods decrease the more stuff you sell.
I'm also not sure that the game has been heavily nerfed in the last year. Caches give more resources than before, which can be obtained without tools. Species starting bonuses gives you more freebies. Failed dangerous glade events are less punishing than I remember.
It was already nerfed twice so far. (If i recall well it offered for every 25 amber trade route -25 hostilty. First the hostility reduction was reduced to -15, then to 30 amber requirement.)
Now it also lowers the resolve gain from complex foods by 1.
I would say this is quite the nerf...It is already quite rare to get it with all the new and extra cornerstones.
It is still strong, but the nerf does make it less useful. Especially on later years, when your resolve might matter much more than your hostility. (Yeah you can get like easily 60-90 hostility reduction with one trade route, but that takes usually 6 minutes to complete. Whereas that resolve on all your foods will add together meanwhile. I know it is a situational issue.)
I beat P20 without ever failing a settlement (200 hours played and 0 failed) so I don't think the game is "overnerfed" or too hard at all.
And I did it without using Protected Trade, I don't think I've even seen it once in my whole prestige climb. There are so many orange cornerstones that the chance to get a specific one is really low, especially once you get the -2 choices modifier.
I also beat P20-s without protected trade. But lately a number of the cornerstones feel a lot less useful. They are so situational, or require other cornerstones to offset their malus or make it work...
Seems that certain buildings are even much much more useful than they were before simply because their "cornerstone counterparts" got nerfed so hard, and with the introduction of extra cornerstones it is a lot harder to get them. Some kind of a smuggler like for cornerstones "cornerstone" would be useful.
Also these just make it more and more into micromanaging the game, which robs quite a lot of the fun i would say for many.