I both like this, and don't.
I like it because it provides an incentive for Lords to have Knights, and Dukes to have vassals.
I don't like it...because it provides an incentive for Lords and Dukes to fight amongst themselves for vassals, thus potentially wrecking any team spirit the realm had.
So, I'm conflicted on this for now.
If I were to implement it, I think I'd go whole hog and make the political power score actually do something, though I'm not entirely sure what just yet.