I obviously agree that small counties and duchies should stop revolting by themselves simply because they have no hope of winning, but otherwise I'm not sure if ruling by fear should have any benefits in CK2. With almost all of a king's or emperor's power being dependant on his vassals, I suspect a ruler who acts like a tyrant and bully towards all of them would very likely find himself deposed or worse, which is really what the tyranny penalty is about.
On the other hand, traits like cruel and impaler making the peasants in your personal demense less likely to revolt would be nice.






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