(1)I'm not here to judge, I'm not calling anyone greedy, but people often do what is in their own self-interest.
(2)The realm gains more gold by making the knight a lord.
(3)Apparently I read it better than you because he said quote: "I make more in Idapur with full knights and estates at 100% than I do with no knights." 
(4)Then why do we have scores for honour, prestige and fame?
(5)I have to disagree. The Prime Minister of the UK has more political power than the Queen, even though she is superior in rank. The President of the US has more power than the President of the Congo, even though they are equal in rank. A title that holds no power is simply a title.
I don't feel like splitting up your message 5 times so for ease, I put in numbers to your different parts.
(1) That is simply wrong. People like to think they are, but they often aren't. Anyways, as you said, they are usually doing a 10-15% which is not in their best interest as you have been claiming it is, thus why are they doing it?
(2)That is just dumb. Obviously they make more by gaining regions, but you can't just get more regions, you have to take them and people go out of there way to stop you. More regions for realm A means less for realm B, so realm B tends to not just let that happen. On the other hand, realms cant forcefully stop the loss of nobles. In order to do that they must convince their nobles (or players) to stay. I say players because people will leave a realm because they are no longer having fun there, which I can't disagree with doing.
To respond to what you said to Chenier that is related, you are flat out wrong. Morek's current condition is not a model for success as their realm is not thriving. You do not seem to fully understand BM. Two things matter for a realm's power, realm size, and realm density. I feel you would agree on that, but you are completely wrong on how you are taking it from there.
High density realms are much more powerful than low density realms. Morek could probably get its ass kicked if Astrum attacked and maybe say Swordfell too. Its a big realm, its advantage, but it has low density which is bad. When Morek was really powerful, it was high density. Now it is much weaker. Luria Nova is a very high density realm, and is very powerful. Luria was equal in size to Morek but due to rogues causing starvation of which Morek was impacted little, they are smaller. Luria is being attacked by 3 realms and doing a decent job considering the circumstances. I will not elaborate on the topic any longer, but high density is better than low density. You are simply ignorant on the subject and I do not have all day to talk about why high density and more nobles is very important.
(3) I am going to say is a matter of interpretation. If you don't selectively quote you will see that he specified the region twice, before that and so I interpreted that way. My apologies for the remark though because after rereading I certainly see where you are getting your interpretation from.
(4) Honor, prestige, and fame all have IG effects. That is why.
(5) Ah, so you know the population of USA and the population of Congo off the top of your head? No, you don't. You don't need to know a country's population to know their power, nor is it the only factor that makes them more powerful. I would definitely say that USA is much more powerful politically than India despite India having a larger population. And to your Queen vs Prime Minister remark, that is false. The Queen is head of state, the Prime Minister head of government. They are not in the same hierarchy and thus claiming the queen to be of higher rank is wrong.
