Well new characters can't really run for rulership right away, nor do they have enough h/p for any position (though I don't know what's the max h/p one can start with), so that's mostly an issue with democracies (or any government with monthly elections), and I have a hard time seeing how heirs would make sense for democratically elected titles.
For elected once/appointed titles, though, I have a hard time seeing how it would concentrate power any more. The way I see it, it would help diffuse promotions, as each title would have its own aspirants, instead of the ruling clique having a years old hierachy where newcommers can't aspire to anything significant because people have already been waiting in line for years.
