Galicia was a rather important region of the empire, both in terms of produce and horses, but also, later on as a source of oil. Furthermore, it provided a buffer to the north, protecting the Carpathian passes and the Moravian gates from Russia. Lastly, it was one of the areas Vienna faced relatively few problems most of the time.
Galicia certainly was a relatively wealthy province, especially when it was acquired relative to the rest of the Empire but in the long run I question whether on balance it was a net positive or net negative for Austria. One of the biggest advantages that the Austrian Empire had was its geographic and economic integration as a 'Danubian' state. Austria, Bohemia and Hungary could be sensibly organized as an economic unit with the added advantage of historical/traditional administrative units governed by Vienna, Prague and Buda often in some association with one and other. IMHO that was the greatest counterforce the to centripetal force of ethno-nationalism trying to tear the Empire apart. But Galicia is the one that's not like the others. Its traditionally part of the historic Polish state and has easier communication via Vistula with the rest of Poland and it has no natural geographic boundary to protect it from Russian territory to the north and east.
So I think the Carparthians would have made a more logical boundary for the the Empire. And that would have put Hungary on the frontline with Russia. IOTL Hungary balked at paying for the reconstruction of Galicia caused by the Russian invasion but it Hungary had been on the receiving end of a foreign attack I think it would have helped to align the foreign policy and strategic interests of the Magyars more closely with the rest of Austria.
Yes. That was mostly after the Austro-Hungarian compromise which allowed the Hungarians to initiate harsh magyarisation within their half of the empire because the Austrians didn’t want to foot the bill of occupying Transleithania. Which happened because the Hungarian Revolution was devastating enough that it both encouraged other minority nationalist revolutions (which often ended up competing with each other) but also required Russian aid to completely crush. Perhaps the Austrians could’ve ended the revolution by themselves but that would’ve costed them more money and blood to do so.
The Hungarians get villainised for their magyarisation policies which absolutely did ostracise the other minorities of the empire but that was because they were powerful enough to force Austria into compromising with them and letting them have power. Such was the power sharing agreement they made. I’d go so far as to say part of the reason for the intensity of Magyarisation came from how unpopular the compromise was with the Hungarians.
As much as I want to give due consideration to the Magyar position I have to concede that the intransigence of the Magyars on the issue of minorities within Hungary was a serious problem. I understand somewhat their perspective. They suffered a lot after the country was essentially partitioned by the Ottoman invasion with mass displacement of peoples, economic decline, a sort of broken state. And they faced Austrian domination with Leopold's imposition of the counterreformation even as early as the 1660s so it wasn't as if expelling the Turks really revived the Hungarian state to what it had been. However that doesn't really excuse their approach the non-magyar population of historic Hungary in the 19th century.
I've always wondered if nationalism took a different route in the early to mid-1800s. If the Magyars had been more accommodating. ITOL there was a brief movement among Slovak intellectuals to reconceptualize Hungarian identity/nationality in a non-enthnic or supra-ethnic fashion. It involved a linguistic slight of hand that would form the framework for conceptualizing a Slovak-Hungarian identity alongside a Magyar-Hungarian or German-Hungarian identity. The idea was to rethink Hungary as multi-ethnic state state rather than a national state of the Magyars.
Mad'ar would become the Magyar Hungarians and
Uhor would describe all Hungarians in the Slovak language with a suggestion to use
Magyaren and
Ungarn in German. So for example a German speaker in Hungary would call himself a German-Hungarian and his Magyar neighbor a Magyar-Hungarian but they were still both equally Hungarians. But to the Magyars Hungary was
Magyaroszag, the country of the Magyars, and they refused to countenance the idea that Hungary could be anything other than
their state to which the other peoples living within its borders would have to accommodate themselves. So even the most liberal Magyar position if not seeking outright assimilation of minorities still felt that theirs was the national culture of Hungarian society and the minorities would have to accept that.
But I've wondered if such a pluralist/multiethnic view of Austrian or Hungarian nationalist could have been achievable. Perhaps not, perhaps its just my American sensibility, where one can be Italian American or Korean American without either loosing their unique cultural/ethnolinguistic background or their identity as 'Americans'. But on the other hand I think about Great Britain. After the act of Union the English, while you could argue that they dominated the new state, did agree to give up the Kingdom of England and subsume the idea of Englishness or English identity into a new British national identity. One could be an Englishmen or a Scot or even Welsh and still be British. Obviously you can make the argument that its easier because language is not such a profound barrier with the majority of Great Britain speaking the same language but it still suggests that such an outcome is possible.
Ultimately I think the Magyars need to be presented with a viable path towards accepting a plural multi-ethnic society without feeling like they're losing face or seeing their traditional historical state dismantled. Give the Magyars the fig leaf of historic Hungary but reconceptualize the state as a supra-ethnic entity and allow the minorities a buy in to the collective history and tradition of that state.
So its federal in a less radical way that the United States of Austria and leans more heavily into tradition and the history of the realms constituting the Empire. The idea being to reconcile and and bond the peoples of the the Empire to the state in a foundational way. A Slovak or Romanian in Hungary could see the Kingdom of Hungary as
their state and its history as
their history and thus its preservation and continuation as being in
their interest. And if its workable in Hungary then why not Galicia, you could be Polish-Galician or Ukrainian-Galician and The Kingdom of Galicia just forms an autonomous state of the Austrian Empire. ditto Bohemia with its Czech and German population. Maybe also an 'Illyria' with Croats and Serbs. Ultimately its a path to multi-ethnic federalism that relies more upon heritage and tradition than a radical reordering of the empire into new states based upon discrete ethno-linguistic population blocks.
Maybe its utterly fanciful, pie the sky utopianism. I concede it runs counter to the development of Nationalism in central and eastern Europe but I think it better accommodates the dynastic origins and traditions of the Austrian state.