The recent developments hint at a troubling future for a large part of Dwilight. See those realms with barely 10 nobles in them? Asylon, Aurvandil, Barca, D'Hara, and Madina. To be so spread across a yet hostile land is not a guide to a bright future. When humans are fragmented with their banners, the wilds will gain pressure.
However, many small realms is almost certainly the most efficient use of resources. Higher taxes, shorter travel times, easier group cohesion, and numerous other factors would indicate that small realms are the best return. They need big realms somewhere behind them to funnel resources, but small realms manage the land more effectively.
Poll