Now, I like this idea, but not necessarily in its current form.
It should be heavily limited, but there should be some free-form customization with drawbacks.
THe reason that I was thinking something like this would be cool, is because I wanted to send one of my characters to another realm, and have them be able to be given an official title within the new realm such as:
Character X is "Emissary/Honored Representative of Keplerstan" while a member of the realm of Evilstan. The Evilstan ruler could give him this title, while the character would be a game mechanics member of the realm of Evilstan to keep a check on things either for peaceful diplomatic reasons, or because Keplerstan doesn't want Evilstan backstabbing them, so they send an official representative to keep a watch on things.