He was elected as Margrave, not as Duke, so he can't secede. Now a Duke has been appointed, and the council is asking for him to step down so the Duke can take control of the city.
I agree that if he wants to keep it, he should. I'm just saying it would not be against the no place-holder rule to step down now because he did not ran on a placeholding platform, he was merely ordered to do so after the fact.
Why did they set lordship elections if they don't want them?
On one hand, you *were* "officially" elected. That's the system that was chosen, and so the game decided that you were the lord. Game mechanics trumps RP is what Tom has usually said in similar cases.
On the other hand, I do not think there is anything wrong with power plays and people trying to convince/force others to step down.