I think the lack of any checks and balances on your power and your ability to have final say on what happens to your enemies without anything resembling a trial is a perfect example of a dictatorship.
Ordinarily yes, but the game starts with you winning a civil war. Checks and balances between administration/regime changes aren't always the first thing to go into place. The game is still in it's early stages, so there isn't a lot of diplomacy scenes yet. They are some scenes like choosing whether or not to keep slavery, or introduce certain laws with a reaction from the press. I know there it will be a while until there is content for it, but when it comes to the reporter I always choose for her to be a muckraker because I think that will be most interesting. If you try to be nice to your rival/brother, everyone else is like "WTF are you doing?"
But at the end of the day this is a porn game, not Crusader King 3 lol. As the player, we tend to choose the options that give us sex scenes immediately. But just like in Collage Daze, those options tend to be more forceful. For example Brittany, it took ages to have a romance route for her, but blackmail and contract magic is an easy fast track to content. I imagine it will be the same way for Power of Will.