First I think it is important to inform countries which are considered to be micronations and what are the tentative groups to enrich the discussion.
On the other hand I consider this topic of micronations should not be separated from big mistake was the implementation of the second team to create utopia. More than 900 users should be distributed in micronations improving their competitiveness, increasing the number of players to feed the respective national teams. At the beginning of the season there were more than 10,000 players utopia, more than 60 players with salaries above 50k which can not contribute to any national team.
In the discussion for the creation of utopia I remember one of the few negative opinions was a Latin American user saying he did not want foreign users playing in his country. Eight seasons after that bad decision, we are evaluating another bad option as it is merging (disappear) nations.
In my opinion, should not be disposed nations and must reevaluate the usefulness of utopia.