Faction wars certainly need to be fixed. There's a lot of weirdness, but nothing that really makes the game too irritating. having vassals who don't have a claim on you launching wars to acquire your throne litterally 15 times a month is game breaking. One side or the other getting 45k troops in a civil war is game breaking.
I raise your Wikipedia reference: http://en.wikipedia.org/wiki/King_of_Italy#Dux_.28Italiae.29.I'm not a history buff but I'm referring to Kingdom in the nation state sense of the word (http://en.wikipedia.org/wiki/Italian_unification) (see maps) and also within the time frame of the game...which as you say is ceremonial. I'm aware of a few basics like you touched on ...the Lombards fascinate me though and the game has spurred interest in learning more about their time as well as before and after.
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