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Especially as most of their planets are generations from reaching any sort of overpopulation issues. Hell, most of the interiors of these worlds are mostly sparsely populated and lightly developed; From hundreds of thousands to a few short millions. There just isn't a need to colonize more...

Star League did a lot of shit that still doesn't make sense. As for why these states don't expand into the Periphery? They could, they just don't due to the expenditure of resources not being worth it.

This is essentially the case, yes. Granted, the Rim Worlds Republic were the primary antagonists with the Amaris insurrection and Amaris himself was a colossal douche to everyone. If anything I can't exactly blame the Lyrans for having a hostile power on their borders like that. One primarily...