But Austria-Hungary wasn't opposed to Germany and showed no signs of being anything but a loyal German ally. Plus Hungary would be far weaker then Austria-Hungary and Germany will practically be forced to occupy the Balkans just to enforce it's influence in the region while just propping up Austria-Hungary would be far easier in comparison.
THey wouldn't have to occupy anything if they propped up the nations born out of an Austro-Hungarian collapse.
How would annexing British colonies/dominions make Britain happy? And why would Britain be happy with having colonies that were so poor in OTL that by the second referendum Britain refused to take them back?
I think Eurofed's comparison was on a more modern day level, seeing as today Canada isn't part of Britain and all.