It does seem kinda whack that individual AI will declare war on the most 'dreaded' nation, rather than increasing defensive positions. They should at least coordinate war declarations between ai so they bring more VP's to the table, rather than south Africa trying to lone wolf me after I've taken all of Africa.
However it would make sense for smaller ai nations to declare war if for instance they considered whether your KD was particularly low in the casualty lists. Ie this player is incompetent therefore I have a chance at beating him.