I'll certainly be following how this implementation pans out but this could add quite a layer to the game that I'm not sure I've seen in another. Bold move in a new direction and it's enticing.
I love this, I always felt the need to keep most of the companions in my party because it felt like I was losing a compatriot to make them a Lord. Having many more of them will allow me to freely give many lordships and possibly not rely on standard NPC lords. Allowing them to die, whether that is just when they're in your party or also when they're lords could strike quite a blow in a good way. It raises the emotional stakes and can spur things like revenge or a true sense of loss for them like you don't risk in Warband.

nice touch to have Vlandian mercenaries for hire, get some heavy Calvary without choosing the faction perhaps?