This doesn't quite stick to the original point, but I think it's still relevant--I would at the very least like to actually have my name change, whether it be following the OP's system or Senshi's system.
Sure, in Warband you could look in the reports and see what your standing was, but your name never actually changed. I didn't go from Luthais, to Jarl Luthais, to King Luthais, for example. I know that we as the player did have the ability to change our name whenever we pleased, but that's not what I'm talking about. I would like it to actually follow a titling system that changes my character's name on the fly--without my input.
Honestly, proper titling based upon your holdings is secondary to me as long as I see my character's name dynamically change. I think that the level of immersion would be much greater for me if it actually changed dynamically.
But now that I've got that out of the way, yeah--I would love to see a proper naming scheme based upon one's actual holdings. A variety of titles certainly adds to the immersion, and there are actually multiple mods that attempted this in Warband, i.e. Floris. I'm pretty sure the names were hard-coded in Floris and didn't dynamically change based upon holdings, but from what I remember the initial titles that they had were based upon the amount of holdings that the characters had.
I could be remembering that wrong; maybe the titles in Floris actually did change dynamically. But regardless, I feel like this is a case where Taleworlds would benefit from following the example of the modding community. I would LOVE to see legitimate landed titles.