My point was that you were criticising the allies, in particular Prussia, for the way they treated smaller German states. I was pointing out that Napoleon was also quite happy to seize territory from them when it suited him - and although Westphalia was not created solely from Hessian territory, he took over that neutral state without any legal justification and it was absorbed into the new Kingdom of Westphalia.

To answer your specific points - Hessen-Cassel had taken part in the War of the First Coalition (like many other German states) in various ways - under a convention with Prussia and then providing a contingent to the Reichsarmee, in addition to the troops provided under subsidy treaties with Britain. It had made peace with France in August 1795. The payments made by Britain later (presumably you have taken these from Sherwig) were in respect of earlier service - for example, the £45,000 paid in 1807 (Sherwig p.366) was for 'Extraordinaries' in the campaigns of 1793-5.