Wounds were one of the few and rare means for someone to lose a title, and had great value in that sense. At least back in the day, when the character:title density was much higher. About the only way to get rid of a duke, too.
That said, I wouldn't mind an update to the wound system. Less common serious wounds and prompter recovery from wounds in battle, all these do is dissuade higher ups from joining wars (which isn't good for anyone), while increasing the impacts of wounds by infiltrators (so that stabbing a duke becomes a more reliable way of removing someone).
