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That way you won't have 1000+ kingdom titles for your vassals to get salty over not having, and nobody will form independent factions based upon those titles.
However, when your ruler dies and your heir takes over, a couple of kingdom titles will be created.
Oh, and also now you don't need 100% of a Kingdom's lands for it to count as Dejure when forming your Empire. You just need to be able to form the Kingdom, and when you establish your Empire with the Kingdom title in your possession, it will become Dejure part of your Custom Empire.
by the time people have that many kingdoms, most people atleast got into early feudal. so they can get regular partition. preventing the title spam.