On the king's four bloodlines automatically becoming Dukes, the key point is that this will lead to the four starter Houses being visible as the four branches of the family tree. I think that is really neat. It will also encourage more "familial" role-playing if Houses each have a core group sof blood relations (I am thinking here of the von Kastiliens, the Steffens). With Houses led by starter RBGs, there will be no inheritance by blood unless RBGs marry into the King's family tree. Duchies will just be political collections of players rather than family-based groupings - that may be what people want but I prefer the more organic KotR model. There will be enough starting RBGs that the "political collection" feature of Houses will still be there.
A Steward Duke mechanic would tide us over nicely until the four branches are established on the map. It is not complex and worked pretty well in KotR.
EDIT: On another matter, what are the rules about converting cities to castles and vice versa? Owner's discretion?
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