I give you Kathiawar Agency:
https://upload.wikimedia.org/wikipedia/commons/a/a2/Baroda-gujarat.png That's 193 states spread over about 7-8 EU4 provinces (the colors listed under ). That's in the 20th century but the situation in 1444, after the recent collapse of the Delhi Sultanate in 1398 would not be less complicated.
It should be said that the HRE in some regions can be quite complicated too, certainly much more than our map allows for (wiki assesses about 1800 "states" in the 18th century but it really depends a lot on how you count).
There's always that time when you're having to decide whether to include some states or provinces or not when working on the map. Hopefully the end product has a nice balance between keeping the world as detailed as it deserves to be without going overboard (and it should be said, we have not added stuff to it for the last time yet).
Now again, as I said in my first post my point is not that we should not represent states smaller than a province in any way. When it makes sense to do so we might absolutely add flavor to various parts of the world through events, modifiers, etc to reflect states not on the map. But I firmly believe it's done better by looking at each area in particular and devising a solution that fits with the historical impact of particular mini-states rather than having a general solution for all entities above a certain size.
Having a set of events around a particular state with its own characteristics is interesting and is something we could do more. Having a set of modifiers in all provinces that contain micro-states would IMO have a pretty high time and research cost with a high risk to still seem pretty bland. Time that could instead be spent expanding the map in some areas to actually include real playable states.

Much as I love the geography of this era (and believe me I do) not all entities are as important as others in the grand scheme of things.
Hopefully this clarifies our stance on microstates (or any entity smaller than a province) in general and not only the ideas discussed in this thread
EDIT: Actually that's the Western India States agency, which includes a lot more than just the old Kathiawar agency so that's likely more than the 193 states I mentioned
