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Republics will never give up territory without a fight.
So while safe and easy for now, in the long run it is a pain to gain them back.
And I guess I'll start to create a lot of republics now.
You can make one or two, since non republic states have a limit of how many counties can be a republic. Still worth the trouble imo, lots of taxes.
Just remember that you will have a permanent -30 opinion modifier for wrong government type, so maintaining good relations is a must. A high diplomatic stat for your rulers, an honorary title and educating daughters with the merchant prince will help and if needed you can plant your chancellor there to improve relations, especially right after a succession when your new ruler has a short reign penalty.
Be careful not to give them enough de jure territory to form a kingdom though. The extra opinion negative from being a vassal kingdom added to the wrong government negative is often enough to be a problem. That's one reason why Venice makes a terrible vassal, because it is so easy for them to form a king-level republic.
Because they keep electing the oldest guy available, they never stay in power longer enough to build up a decent ''long reign'' bonus. Pretty much everytime there is a faction, you can bet the your ass the leader of the city state is there.