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I understand what you're saying but to capitulate means to surrender. You could add a warscore feature such as the one in CK2 but i would prefer it the way it is. I just dont trust a feature like this with a game of this scale compared to Ck2 or any other Paradox game. The Germans in ww1 were also beaten, their line was broken after the Batlle of the Somme. They were running low on food, clothes, ammo, etc. They didnt lose land but they were going to because the line was exposed and Allied troops were pouring through it getting ready to roll it up and destroy the German Army.
I am not sure how you could represent what happened to the Germans in ww1 using HOI4 game mechanics. If you added things like farms and a supply stockpile like in HOI3 then maybe we could get a feature like war exhaustion to go with it. Even then you would need a good enough AI that will develop those new mechanics and a naval system that wouldnt cause the entire German convoy fleet to be destroyed within the first 2 months of the war. I am willing to bet the Devs of this game have thought about it and concluded that to add this kind of feature would hurt the game. You cant just think "there needs to be war exhaustion", you need to think about the whole process it would take to make that feature feasible. It would take adding a lot of mechanics not present in the game. The only economic thing you do in this game is build and assign factories. What you want would require adding food, clothes, tools, ammo, and other things. You would need to add building that produce those along with stockpiles to add to each one. Theres more to it then just that as well.
What you're asking for would require adding many new mechanics to the game and I think it would be cool but the way it is now, it wouldnt be cool at all. I dont want anything that forces the AI to surrender if it can still fight back. That kind of feature could ruin the game for me and probably many others. Just look at Stellaris for an example, that system was a flop and while it might have improved (i havent played it since then) it was pretty much disastorous for the game.