While in itself a working body, the primary strife that led to the collapse of the council was that it only handled the political, economic, and social aspects of the Alliance. The military was still under Eieber and the Slayer Dragons. This may have worked if the politicians had held up their half.
Failure of the Council
By centralizing the government, widespread corruption became a problem from the start. Politicians found themselves far from home, with no oversight.
As the corruption continued, countless layers of bureaucracy were added in an effort to curb the misuse. Unfortunately, this only succeeded in making the problem worse, so the Council was disbanded in A.Y. 124.
The Ruling Council was replaced by the Ministry of Earth in A.Y. 132.