I always thought that it would be a neat idea if your vassals approved keeping other vassals in check. Say you have the kings of Italy, France, and Frisia as vassals; if France inherited (or conquered) the kingdom of Frisia, Italy would greatly appreciate you breaking apart their suddenly-stronger rival. Of course, the king of France wouldn't be too happy about it, but as your empire grew larger it would allow you to appease vassals through non-monetary means and give you a way of keeping revolts in check. So maybe the vassal "limit" should be an actual hard maximum with the ideal located at the middle - although you COULD have the maximum number of vassals, there would be a lot of unnecessary political intrigue and it would be more difficult to manage your expansionist vassals.
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