Personally, I don't consider them that much out of place, really.
Granted, they didn't actively take part in the war untill their hands were forced. Which speaks volumes about their sense of superiority, in my opinion. You can either look at is an attempt to maintain neutrality (if you ask VS), or a hope that the two heathen empires would obliterate each other (if you ask anyone else).
They didn't side with the NC, because that would draw them into the conflict - they wouldn't be able to hide behind them, they purposefully tried to maintain neutrality, or avoid casualties, by not doing this. But when it became obvious that the war would consume everything, they decided that "clearing up the problem", would be the best option, and thought this could be done easily.
This would also explain why their weaponry aren't above par; they simply haven't put that much research into weapons yet, instead focusing on what they percieve as technology that might improve the way of life for humanity.
After all, had they researched weaponry to any great extent, they couldn't claim they were actively trying to avoid war. The fact that they have done that to a certain extent, is part of their dichotomy. Is their intent truly just the betterment of humankind, or are they to a greater extent trying to manipulate everyone into their beliefs - after all, they do nigh worship the Vanu tech.
And given that they actually have put research into weaponry, they have tried to create weaponry that operate differently than what would be common, but seeing as they are already quite effective, it's no longer just a matter of
creating new weapons, but also a case of trying to fix what isn't broken, meaning you won't necessarily get something that hurts more than a solid metal object, hurled through your body at 5km/s. Just something that makes the weapon easier to use, such as not having to worry about declining projectile paths or air resistance - but instead energy dissipation, and potential damage due to no mass to affect the target.
And as for NC and VS going at each other, consider it might be possible that the VS refused to share their technology with everyone - out of their former sense of superiority (if you ask everyone else), or because they were afraid the technology would be corrupted (if you ask VS). Now, you have a civilian populace that not only is downtrodden, but is also starving, and those that might be able to help, refuse to do so - what would you do, if you were of the NC mindset of protecting the people at all costs?
In any case, that's part of the story in a short story i'm writing. ^^