I'm going to defend Republic City a little bit. It existing in the first place in LoK as a neutral territory/country is probably the most realistic thing that would happen after Ozai's defeat, and also because the current track record of the Avatar being the sole person to "keep the balance" whatever that means hasn't been doing that hot up to the point of ATLA. Don't get me wrong here the origin story for it existence is absolute trash, but the idea of a neutral territory being formed in a UN-like thing is probably the most realistic thing to exist in LoK considering how much of a non-confrontational person Aang is.
Like the Fire Nation is relatively unscathed after Aang took Ozai's bending away, like they're still at their peak, and honestly I could see that if Zuko tries to push too hard on giving up territories that the FN military had fought for, a good portion of them may just decide to split off and form their own nation. The Earth Nation was already heading towards failing anyways even before the inciting conflict with Sozin's Comet, they're not really in much of any position to do anything, so they would kinda have to agree with anything to preserve what they have left. The Northern Water Tribe seems like they're pretty much going to practice the "fuck you all, this ain't our problem" stance of foreign policy, and the Southern Water Tribe... they exist.
Even if we take all the bad writing of LoK and throw it into the trash, Aang is still nowhere near prepared to handle the political shitshow that is going to happen post-Ozai, to the point that he would probably be completely fine with most anything happening as long no more fighting or war happens, and will inevitably leave Korra to clean up his mess... Like Roku had kinda done to him. Almost like having a world where the Avatar is forced to be the intermediary and peace keeper between all the nations, and also be the intermediary and peace keeper between the human and spirit world was a bad idea to begin with, and was going to inevitably end badly for every single avatar.