Yes, but I have a feeling that the point was not only to make it a battle of spite but also something that would actually make the exiled noble want to leave. It would be a sort of alternative to banning, in that instead of telling the noble he is banished from the realm, he is told that there is nothing for him in the realm. While not forbidden from entering the lands, there would be no home waiting for him.
Exactly, and the only real incentive people have to stick around is pure spite. Or if they are a priest I would guess it wouldn't impact them too badly.