Kingdom of Baron In 800D Europe

The year is 800 AD. The Kingdom of Baron mysteriously replaces England. The Kingdom of Baron has all of it's magic and Fantasy Elements, including airships. However, Baron only has 5,000 inhabitants. (I"m being generous, back-ground cannon says Baron has 4,500). So Baron has monsters, (Probably not counted in the population) Dark Knights, Mages, Dragoons and it's Royal Gaurd. (So let's say, with monsters included, Baron has 10,000 inhabitants)

However, please note the enormous numbers disparity between it and it's neighbors. Baron is small even compared to Medieval powers. With such a change in Europe, can Baron become a Great Power, or will it be wiped out somehow? since The Kingdom of Baron is in the year 800, could they maybe advance to a world super power status by say, oh 1500?

Edited by KongMing - 09-May-2012 at 14:43