One question that lingers for me in regards to non-barony settlements. Who owns them? As in, who is the bishop, or burgomaster, or whatever subservient to. Presumably they must not be completely independent, or there would be no point to them (unless they acted as a form of opposition or obstacle to the player). I'd assume that at the very least cities provide some tax and levies to some noble.
The obvious answer is the Count, and perhaps I look silly for even asking this question. But that means that the most efficient use of your demesne is to hold just capital baronies so as to maximise the number of cities, churches, and baronies under your control. Though I guess that is counterbalanced by decreasing your power/hold over the province. Perhaps that leads to another layer of strategy?
They are titles just like castle/feudal baronies. They just have a different form of succession (which I will not go into now, as I mentioned in the DD.)