It might be for about a day. I don't want to get into politics too much but she could be incredibly out of touch and not realize what she ultimately cast upon the entire land out of some supreme ideal which can't exist at the level she wants it. Lets just say we have Farmer A and B, farmer A isn't doing so well with his piece of land. Farmer B goes up to him and makes A a deal. A accepts and B prospers. As a result though A's family becomes starved, does this mean B harmed A's family? Now, I am not saying that this spell would necessarily smite B, but obviously the effect would have been seen to make "peace". The effect would be constant fear among the public, possibly spreading all sorts of stories true or not of what happened to people who may have harmed another person. Naturally no one knows everything about every other so it spreads ultimately putting people in panic about doing anything. I hope this gives some material and perspective on the plot angles here.Which then raises the question... can you both be exalted AND tyrannical?
I suspect if they had a military it would be construct based. This nation would be far and away more advanced than most others simply by virtue of the reduction in the cost of might makes right on mortality. Trade would be far safer and there would probably be fewer wars on the whole though I suspect intrigue would run rampant.