That's intentional. King Blaastar should look into hiring a speech-writer.
This stunt definetly proves Richard's got the skills to play in the big leagues as Nova Prime. Where someone else would've tried violence first, Richard realized he could get a lot more mileage with diplomacy, a bit of free advice, and a mild threat.
If Richard had taken the fight to Blaastar and won, then all he'd have done is deliver chaos to the entire region, as Blaastar's lieutenants would've started fighting over who takes over. And that's before neighboring powers start trying to reclaim lost territory.
Instead, Richard gives Blaastar's dominion a solid bit of legitimacy, stabilizing the region and forcing those same powers to at least acknowledge the idea of treating with the new Monarch as an equal.