You actually give 50 gold to each knight though? In my experience most realms only average 20-30 gold per knight. Also it is possible to run cities much higher then 10%, my townsland on Dwilight is running at 15% without any problems itself, the city runs higher again but requires some attention to maintain at that level.
I just gave you base numbers, 10% tax rate, 100% production, 7 day tax collection period. Some of those regions have only 2 knights, and could support a third; others have 3 knights and really should get rid of one. And our priestess certainly doesn't need much gold.
The point is, we don't "need" more knights. So there are indeed realms that don't "need" knights for full coverage.
On the other hand, the other 3 realms I'm playing in do have a need for knights to varying degrees.
