I'm not in any realm that has conciously debated the system and adopted any realm-wide position. In fact, in the realms I am in, I think only one realm even has a duke that is not also the lord of the city/stronghold. (Also, I find that many people have no clue how the new system works, and don't really want to, either. They just want duke=city lord, thank-you-very-much!)
Unless you have lordship elections, I consider the appointment of lords to be the duke's business, and everyone should keep their noses out of it. That's why the duke has the appointment button.