Unless its somehow made enticing. There's zero "cool" in admitting defeat to someone and then giving up some of your income to them. It'd have to be a pretty awesome game for me not to immediately reload a save, or just quit outright. So the carrot system. There'd have to be something in it for them... but what's cool about being someone else's vassal? (everyone wants to be king)
Why are there any multi-duchy realms in Battlemaster, instead of a lot of city-states?