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Kingdoms as vassals make sense to reduce the direct vassal number.
Dukes as vassals when you can't create the respective kingdom.
Are you having problems with the vassals in those de jure kingdoms? If so, it's pretty useful to give the kingdom title to one of the vassals who likes you so they can deal with those unruly vassals instead. That way you can focus on pleasing that one king vassal and keeping him happy instead of dividing your attention between a small army of troublesome dukes who might team up to revolt.
Also if you're running up against your vassal limit and plan on expanding your empire further, then yeah consolidating some duchies under a king is a good way to do so.
Advantages:
- kingdoms have a very concentrated power base and can fend for themselves in most cases, be it rebellions, raiders or adventurers
- they can expand on they own into neighboring countries very successfully, spreading out your empires territories at a far faster rate than dukes ever would
- they are relatively easy to manage because you have only a few vassals to manage at all
Disadvantages:
- they are very powefull and can dethrone you easily if they slip out of your grasp, as they have far better financial standing and levies than a couple dukes, meaning more mercs and troops to fight
- should they ever win a war for independance, you won't be able to vassalize them again diplomatically
- if you create more empire titles, the kings will desire those and you'll have a lot of trouble because of that
- while dukes tend to struggle in wrestling more counties for themselves, kings tend to be strong enough to do it at an alarming rate (so even if you weaken them by retracting their county titles, they'll recover pretty fast from it)
Dunno your exact situation but viceroy kingdoms are great.
Also having powerful direct vassals as kings is good for empire expansion, you dont have to fight anymore and your empire will grow, your vassal kings will be constantly conquering new lands. If you have only dukes, they may be too weak to conquer your neighbors.
Also its good for empire management.
The always working pattern is:
You are duke > you want counts as your direct vassals
You are king > you want dukes as your direct vassals
you are emperor > you want kings as your direct vassals.
its also good to have as much counties as possible and not just one county with 5 castles you directly own. One county and all objects in it to be your vassals. -for best income and army
Also, while more counties does give you more vassals, and in theory more gold, it definitely gives you fewer troops, and the gold loss isn't that significant. If you are independent, you get a 50% levy bonus in your capital. That alone makes a huge difference levy size, but the marshal train troops is also a county wide buff, which significantly increases its value for each additional holding you control in your capital. With a good marshal, you can be nearly doubling your levy size just by stacking castles in your capital. The same applies to the steward collect taxes action. You can significantly increase income by directly controlling extra holdings in your capital. Furthermore, having a large army is far more important than being able to field a large army for long, as the AI considers their army size versus your army size when making decisions, meaning you have far more time to tackle factions and suffer fewer external attacks just by having a bigger army. This added stability means you can devote more of your income towards building up the realm, and maintaining relations so you can pass laws sooner. This makes it easier to tax your vassals heavier, and all in turn compounds for higher economic and military power.