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So vassals still totally worth it, marches are a roleplay asset in SP. If they didn´t cost diplo to mantain, ok, but they do. And using Diplo for development is very good.
Ultimatedly the bottom line is making the most of monarch points. Marches aren´t cost efficient exactly because of that (sum of losing stability + not viable to have several marches at the same time due to diplo cost).
I don't understand, they only use 1 diplo slot like any other vassal.
As exarch mentionned, the downside is that you get a -1 stability and -200 relations for revoking the march, so they're practically impossible to annex. The -1 stab will disapear if you have diplomatic ideas.
However, as of 1.12, they keep their military bonuses no matter what their size (25% max manpower, 20% manpower recovery speed and 30% force limit), and with the -15% liberty desire, you're pretty much assured they'll never rebel, even above 300 development.
Since you're not supposed to annex them, they don't get the -30 relation malus when you annex another vassal.
If you have an area you're not interested in owning directly (because it borders an ennemy for exemple, which historically is the whole reason of marches), it can be a good tool. Keep 1 march the entire game, while vassals come and are annexed.
If you own Common Sense, the interactions with marches make them even more interesting, as you can feed them manpower and build forts in their territory, making them very nice buffers.
In a game as Poland, I shared Greece and Anatolia with Moldavia (their starting march next to Wallachia). The point is to give them regions you want to fortify, you'll pay the fort once, but they'll pay the maintenance.