It's a small world, MrT, far away is never far away enough with Peter Ebbesen around.
As for historical events such as the most notable of them - inheritances - if the player works for them and the AI is geared towards working for them, and this system works, we will see powers such as Austria and Spain as much on the rise as before - but they will probably have to go the historical path which will damage other critical aspects (such as technology, prestige, finances) and hurt them badly in the later part of the game.
In EUII, Austria inherits hungary, all of it, in 1540s, but fact is it all ended for medieval Hungary with the battle of Mohacs, in 1526, when the Turks defeated them and took about 3/5 of Hungary turning it into the Buda Pashalik. Austria quickly gobbled up the rest.
This link tells the whole history of the partition of medieval Hungary.
But since it was such a disaster and it all started with the fall of Belgrade in 1521, methinks it is important to give Hungary and any would-be conqueror of it a hand in this particular inheritance event.