Personally I never use peasants as governors, because in case there are no other higher ranked generals in the same province and you get attacked, then you have to deal with the assault with a general who is very likely to flee as soon as you take casualties.
I normally prefer giving titles to already high ranked generals, unless none of them get at least 3 acumens when they spawn. I've never heard of any penalties a governor would receive for working abroad.
If you want to keep a good loyalty even though you have very low garrison in one province, just use spies. They help you keep the population under control.
Once you empowered a governor, don't strip him of his title, unless he gets bad vices (also note that with farmland 40% you get the steward vertu which boosts the agricultural income by 10%).
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