Why do people claim that the Empire is working a long term plan in the aftermath of the White-Gold Concordat (WGC)? I'm serious; why?
Long term planning is characterized by forgoing a profit/benefit in the immediate future in the interest of gaining a larger return for ones investment in the more distant future.
Short term planning is characterized by forgoing a profit/benefit in the more distant future in the interest of gaining profit/benefit in the near future.
"Immediate future" and "distant future" are not terms easily defined by counting years. Any argument along the lines of "25 years has passed, therefor it is long term" will be ignored as irrelevant to the discussion, because it is.
I am starting from the assumption that the Emperor, the members of the Elder Council and the Imperial Generals are not complete morons. Irrespective of whether or not the Empire is in the right, I think it is a fair starting point to assume the Empire's leadership has, at the very least, an understanding that undermining and selling out ones allies will shorten their list of reliable allies. So I'm excluding the answer of "it was intended to be a long term plan, but it didn't work out". This is simply because I think that if you think the Empire's leadership are so incompetent that they thought that signing the WGC was "long term" thinking in light of, well, the WGC, there isn't much to discuss. You should have ample reason to dismiss their leadership qualifications on that alone, because that would simply be detached from reality.
Note: This is not a thread about "what the Empire could/should have done". What I am about to point out is a rough sketch of what I would expect to see if the Empire approached this with the long term in mind.
Looking at the situation of the Great War, I would say that the most obvious case of "larger returns for ones investments" would be not splitting the Imperial Provinces apart. If one can unite all 4 Imperial Provinces in the fight against the Dominion, and avoid certain stipulations that target the Empire's allies. Not having to cecede land in Hammerfell and not having to agree to ban Talos, because these are the most obvious trouble-makers in the WGC, would probably have cost the Empire then and there, because the war would not end in 4E176.
This does carry some risks, like losing the war, and the damage done potentially being higher than the benefit one would reap, but the general idea is to not give the Dominion these stipulations that does hurt the Empire in the long term by 1) outright splitting Hammerfell from the Empire on bad terms, and 2) create a significant amount of strife between the Empire and Skyrim, which is disproportionally affected by the Talos ban. Refusing to sell out their provinces has the potential benefits of strengthening the loyalty to the Empire, since it stood up for them, and that you do not lose the manpower and resources in the provinces. Nor do you have to spend ressources dealing with the result of the strife, which in this case would be the Skyrim civil war in 4E201.
As Daniel Dennet once said: "Every time one reads or hears something, one makes a mental copy of it. Every time one reads or hears something, one makes a mental copy of it." In light of that I will repeat that I am not putting this scenario up as what "should have been done". That is not the topic of this discussion. This is strictly an example of how one would approach the situation with a long term goal in mind based on the assumption that the Empire's leadership is not so incompetent that they could not foresee the Redguards and Nords (and possibly others) taking serious issue with the WGC.
What actually did happen at the end of the Great War?
The Empire ceceded land in Hammerfell to the Dominion, which resulted in the Redguards objecting and subsequently being denounced as an Imperial Province to stand on their own against the Dominion, and accepts the Talos ban, which creates increasing anti-Empire sentiment in Skyrim, which is the most affected province regarding said ban. This resulted in the Skyrim civil war.
As we see with the Dark Brotherhood questline in Skyrim, the situation has also created dissidents willing to go so far as to assassinate the Emperor in the Elder Council. Whether this is due to the influence the Thalmor gained (Amaund Motierre being a traitor) or the weakening of the Empire (Amaund Motierre being a patriot) is unknown, due to little to nothing being known about the goals and affiliations of Amaund Motierre. The point is that it shows that there is also creating strife in the Elder Council to sign the WGC, which is where the weakening policies and the Thalmore influence both come from.
I will reiterate that I do not believe the Empire's leadership to be so detached from reality that they did not see these problems being very real risks when signing the WGC.
Why did they sign the WGC? Simply put to end the war quickly so they could begin to rebuild their armies and attack the Dominion.
As I believe the Empire's leadership must have understood that signing the WGC would alienate at least 2 of their provinces and some members of the Empire's leadership, placing the seeds for strife and rebellion, this can only be characterized as an arms race. This is the Empire trying to beat the Dominion before the house of cards that the Empire became under the WGC collapses on top of them.
Agree or disagree with the Empire, this is short term planning. Not long term.