If we instead choose to wage peace, we look slightly weaker, and prevent a world war.

Man, you really need an history book and to study what happened before WWII.

Let me explain a couple of things.

Before WWII, in March 1938 Hitler annexed Austria on March the 12th with referendum on April the 10th (where the ballot were not secret and the vote were manipulate). After that, Europe did nothing because, like you, they thought that if they concede to this Hitler demand, he will not ask for anything else. Look for Anschluß Österreichs

Then look for Munich Agreement (October 1938) which granted Hitler part of the Czechoslovakia as last request for territorial expansion, signed just because doing this way they would have kept peace.

Then on March 15th 1939, Hitler bullied the Czechoslovakia president to sign the independence of Slovak (with the threat of invasion). The Slovak state then became Protectorate of Bohemia and Moravia on March the 16th. Europe still does nothing, just because Hitler assured this will be his last request.

We all know what happened next, on September 1939....

It’s unlikely America is capable of advanced reasoning such as this, but I really hope we are.

Problem is: it was exactly this "advanced reasoning" that was the cause for WWII. Hitler did what he wanted because he noted that Europe did nothing at every step he tried.

Putin invaded Ukraine because he noted that the world did nothing when he annexed Crimea (and, btw, breached an agreement Russia signed with Ukraine).

Do you see the parallel ?