Went looking around for beggars to see some of the dialogue that was added in 1.7, and there's variety there. Some have issues with mental health, some were brought in with the promise of a job but didn't get work, or an abusive husband who doesn't work (I feel like I saw this one pre-1.7). It adds to the immersion having people with struggles.
However it's a shame that there is no gameplay reason to interact with them, and you can't give them charity, like you could to random citizens of struggling towns in Warband. Also, is Western Empire the only region to actually have beggars in its towns?
In general, the town scenes are amazingly built, but there's still so little gameplay reason to go there.