Finally, someone who got it.
Exactly. The question of how many duchies a realm should have is not a game-mechanical one. While there will be some limits and incentives to prevent the utterly silly (like making every character the duke of a no-regions duchy, or putting 50 regions into one huge duchy), there is a lot of freedom here, and there isn't one perfect solution. For pure game-mechanics, I will try to balance benefits and problems so that many styles are equally optimal.
But roleplaying, politics, power and personal relations will play a very big role in how a realm is going to be set up.