Not two 'capitals', but two (actually, three) level five cities, one of which is the capital--though I wouldn't be surprised if the capital gets a special defensive bonus.
Heck, GK probably has more than one level five city (the capital and then the city captured from Bea), too.
Interesting that Jetstone is getting another royal heir soon, as is Transylvito and Faq. Perhaps a new generation of CWLs raised on Parson-tactics to give him a run for his money?
I find it interesting that it seems that Jetstone's standard operating procedure is to parley before fights.
Every side probably parleys before a fight. Nearly all sides in Erf are hostile to one another (with allies probably seperated by buffer zones). So in any massive, massive fight where losses are expected to be heavy on both sides, it's not so surprising that they parley and, perhaps, manage to settle their dispute without massive military losses. After all, remember Hagar--they sent all their units to Jetstone's 'aid' and someone was able to capitalize on their lack of might at the capital.