As stated before, hard to have political intrigue in this setting and story. In case you didn't realize, gates to what might as well be hell are popping up everywhere. So you think it'd be more 'immersive' and realistic if all the counts just tried to backstab each other in the middle of all this.
Well mass hysteria would seem a good answer.
People should go hysterical, lose faith in all but the local authorities, trust their defense to opportunistic tyrants, slaughter Daedra worshippers, conscript Mages and Fighters Guild members, recall the Legion, squabble over who will lead the militias, utterly reject the claim of a playboy priest, misconstrue the Dark Brotherhood cult as Daedric, lynch Dunmer, strike deals with Bandit ringleaders for protection, strangle trade in a state of panic but give a free pass to Elsweyr's Skooma, generally fracture and withdraw inside fortified enclaves, and be overwhelmed by refugees from outlying villages.
Also, in a world where a random goddess can change the eye and skin color to an entire race, you think little bit of deforestation is a game-killer? Sure, it was abrupt and unexpected. Sure, it was a slight disappointment (although games with jungles tend to have problems, played Battlefield 2? You can't move in parts). But it did not kill the game, unless you are extremely shallow and will quit because of any reason.
Ah. Good you mention that. When people talk about the jungle and rainforest, they're not just talking about putting a different speed-tree package into Oblivion.
They're talking about everything that comes with that rainforest. Uncomplicated, self-sufficient, hearty, and extremely loyal Colovians and Nibeneans in garish costumes, bizarre tapestries, tattoos, brandings, and elaborate ceremony.
People forced into trade on because of a religious prohibition on manufacturing, a magocraty based on the need to defend against magic. An Imperial city that makes people think of Venice and Constantinople combined located on the Amazon river with more and stranger cults then Rome.
The Jungles are just the most obvious thing. Now I'm not even suggesting it should be an exact copy of what the PGE describes, but rather that the inspiration of it is used to create something that actually resembles the Capital of an empire spanning nine all rather alien nations.