In a better anime, Itami would've convinced Princess to leave one or two of his people on each wall for better communication, allowing him to negotiate with the Princess about resource allocation the moment it became necessary. But oh well elf loli anime sells.
EDIT:
To put it in simple terms, this could've been so much more than loli orgasming, Wagner flaunting random violence with fantasy ecchi service. But it isn't.
AHAHAHA. That is brilliant. Threaten someone, likely a representative based on his behavior (that did not show hostility, btw), from the force that casually brutalized yours. Applause.