I think a big challenge is the conflicting messages we send players.
1. If you are ruler, duke or lord, you must own that position. Just as a real noble would never happily give up power, neither should you.
2. Don't hold on to those fun positions like ruler, duke and lord. It ruins the fun for others when you cling to power like that!
I would rather there be a mechanic that ensures positions are not held by the same guy forever while allowing him to realisticly cling to his power. The only thing I can think of is mortality but my impression is that most players don't like that idea.
Oh, I know.
My ideal would be a family system not tied to player accounts, so that one player could play the heir of another. Then you could have actual inheritance of positions, without the problem of it locking up a position for a single player forever.