I made a VERY rough prototype. Download links here:
http://www.marshlandgames.com/diplomacy-simulator/ (While I'm having the downloads hosted through my website, I will be sure to credit everybody in this thread when it become closer to release. I am not trying to steal this idea, and it will always be free to play)
It has programmers graphics for now. You can click on any other diplomat (colored cube) to get some information about them. You can use the arrow keys to carom into a diplomat to interact with them. You answer the questions with a slider, and then it displays the effect it had on the relationship between your two countries.
Obviously it isn't playable yet, but it gives you an insight into what I've been doing with your suggestions. I'll work on adding a ton more tomorrow, but at least I have a framework to build off of now.
What I would like from you guys:
* More syllables, adjectives, etc for country name generation
* More types of diplomatic interactions. I currently just have: Where do you hold your glass? and How full do you fill your glass?
* Graphics for the interactions. Eg a wine glass graphic that I could show x% full as you changed your amount.
* Models for the people.
* A logo