I agree that there shouldn't be a complete turnover of the ruling classes in middle ages (there isn't none now lol).
I'll make an example of what I mean. Think at HRE at the time of Frederich Barabarossa. You'll have provinces under the direct control of the Staufen dinasty (i.e. Swabia), others controlled by the bishop-counts (i.e. Mainz), others controlled by vassals (i.e Savoy), others controlled by a free imperial city (i.e. Hamburg).
Depending on the kind of government that you have in that province you can have different recruitment pools, from a city state province for example you could have more militia and zero knights but you can have more income from it so you can buy mercs eventually and you can have some happiness bonus for the people who live there. A vassal controlled province can give you cheap troops, you pay less the buildings there (because the vassal pays a part of them) and a good law bonus, but you'll have lot less income and you'll have a chance every turn that a named character put there will go rebellous (or if there's none a lot of rebels armies ready to occupy the vacant vassal seat).
This is, briefly put, how Anno Domini will work in the next version.
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