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I'm not certain because I haven't done this yet, but it sounds like you have built a Temple (which would provide the bonuses mentioned) but then leased it out giving up those bonuses. I'm not in-game at the moment, so I would read the tooltip about Theocratic vassals again.
That's exactly the case -- I'm just not sure if I'm missing out on Piety or if the UI text is misleading.
The in-game entry for "Leasing" is: "Minor Baronies can be Leased our to Holy Orders or Clergy. Leased baronies provide Taxes and Levies to the Lessee rather than the Holder."
As written, I would take that to mean that while the lessee gets the gold and levies, the "In Your Realm" effects (like Piety gain and the Men-at-Arms buffs) should still go to me. And as I said, the Holding's info box shows (right next to the lessee's picture) that those effects are listed as the "Effects from Buildings (for you)."
The way this normally works is that your realm priest is leasing all your temple holdings, so you don't have to entertain relations with 30 different bishops.