I pretty much always start with type 4 in conquered settlements.
For point 1, TMS, I would say such a town isn't important enough for Rome to bother going through the hassle of keeping an eye on, let a local run it and when it's bigger and wealthier send in the tax assessors. For point 2 I roleplay the client ruler is a hated opponent of the old regime I put in charge as a punishment and I don't really get your point 3, surely the part of the point of type 4 govts is that the locals hate/don't trust you and someone familiar running the show will keep them under control.
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