I just pummeled a nation called Bondostan who has his own alliance (of which he is the sole member!
) and sent him into anarchy. Came away with 3 miles of land, and about $1,000 credits.
Now of course we should all be paranoid that someone else will try to do this to us...
Edit:
Hmm, the loss of tax revenue due to population unhappiness is rather large. Apparently you need to have some very good targets to make it worth while to go to war. I'd say my 'experiment' is a break-even rather than a profit.