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One of the good features of MTW is the emphasize on the faction leaders, albeit sometimes unbalanced or exaggerated. If you get your king killed or isolated (the most popular locations for that were the Mediterranean isles and Ireland) you would face the risk of serious turmoil, revolts, even a civil war. In RTW your FL is just another FM in that aspect. Have him killed in a crushing defeat and the heir will simply take his place. No effect on gameplay except the loss of a general/governor. (I don't know if rulers' importance has been restored in MiNO.)
Since I haven't noticed (maybe my bad?) any improvements in that area, may I suggest some scripted penalties for both the player and AI factions (especially in case of kingdoms with centralized government models) if the FL gets killed in a defeat or a riot, or isolated (besieged, campaigning for too long in enemy soil, in an island with no ports, too much away from the capital for too long etc.) in terms of increase in global unrest, disloyalty traits of generals/governors, drop to bribe costs for disloyal generals, loss of FL's influence, if possible aphistemenoi resurgences, decrease in tax income maybe, or something neater that I'm so sure you can come up with than I do?
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