I agree with Tom, the issue is simple lack of players. And I can speak for the rogue regions between Outer Tilog and Giblot... the realms are at war.
I would also wager that the game is designed more for smaller realms than gigantic empires. To adjust the estates for even less knights being needed to maintain a region only helps the bulkier realms continue to be bulky and domineering. So if anything all the rogue regions indicates the need for some secessions.