To be fair, what you basically had was patience. Arnold didn't scramble to become Duke. He didn't fight 4 other electors roughly the same age for Leopold's affection. He became Duke because at the time there was no one else for Leopold to give it to. (I am assuming Zirn wasn't around yet) Now the fact that you stuck around for 3 months is commendable. But that took OOC patience, not IC political skill.
In Franconia, things were a lot different. We'd have 5-6 active avatars at one time. Stig's Furst idea was good but too little too late to solve the player boredom problem. If your avatar is in a big House, his chances of being Duke are not good. If your avatar is older than the Duke, then your chances are just about zero unless the Duke dies or the player quits. If your avatar's Duke decides to name a baby as his heir, then your pretty much left with no hope in becoming Duke.
So, mid-level ranks and titles might help this. I really like your title ideas and I think they could work well. It's very much in line with how MTW had titles and I wish M2TW kept them. Giving people titles to strive for, as well as perks and responsibilities from those titles, should help stave off player boredom. That way there will still be a power structure, but more of a chance that an avatar can achieve rank in that structure.
I totally agree that the pyramid shouldn't be too steep or too flat.

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