You can be reelected as Ruler in a Monarchy, just can't appoint yourself.
Precisly. Government systems are a lot more complex than when they first came out, due to their customability.
The way I understand it:
Any government system: get elected ruler, lose lordship. You can get re-elected as ruler aftwards.
Republic, Democracy and Monarchy: can't appoint yourself as duke.
Tyranny and Theocracy: have fun, you can appoint yourself to pretty much anything you want.
Monarchies usually don't have elections, but that's up to the ruler. In D'Hara, for example, we are a monarchy with elections. A kind of constitutional monarchy, except we didn't bother writing a constitution yet. As such, it was possible for me to be re-elected duke after gaining rulership, though I couldn't appoint myself (even though I could appoint another).