The Federation has the potential
to be an unrivalled military juggernaught.
The fact they the seldom or never devote themselves to total warfare just speaks to the ideals to which the Federation adheres.
The Romulans are infact deadly adversies as any level of instellar war would result in the very least thousands of casaulties as was alluded to in the Defector.
The Federation even views the conflict with the Tamarians as a great tradegy though I am sure that race is incapable of threatening the Federation in any serious strategic way.
The Dominion was a joke. The female changling thought the shipyards of a bottled up Cardassia Prime would bleed the Federation dry?
Automated shipyards are not beyond Federation technology. Instead of one system those ships could be produced in hundreds simulateously. The ships don't even need to be crewed. Was the Dominion going to prevail against 30,000 Mirandas controlled by M5 or better AI?