I would say
TL;DR - is it an acceptable method to provide generous estates to nobles of certain classes
Yes.
and kicking them out (or reducing estate size if you prefer) if they are no longer the desired class?
No.
Because the latter is
actively penalizing people for not being a certain class.
Logged
Timothy Collett
"The only thing you can't trade for your heart's desire...is your heart." "You are what you do. Choose again, and change." "One of these days, someone's gonna plug you, and you're going to die saying, 'What did I say? What did I say?'" ~ Miles Naismith Vorkosigan