I think this could be a really neat aspect of the game.
Below are some ideas I had from a longer thread concerning this -it may get a few more eyeballs if posted on this interesting thread. Forgive me if there are a few people out there who will read this twice.:
Breeding and social norms: As one Way of making these all-human fractions different- they could have different social norms. for instance:
-only males can be king.
-only females can be rulers.
-both males and females are OK.
-incest is strictly taboo-any attempt at this will likely cause some sort of rebellion, loss of faiths, loss of vassel states, ect.
-incest encouraged-sort of a xenophobic society where mates brought in from out of the country cause political unrest.
-religeous societies- can only marry those similar allignment (fallen can only marry fallen) -otherwise political unrest.
-open society- perhaps trade is more important than morals- can marry anyone
-strict customs whereby people will only accept leadership from the first born.
-not so strict-people expect that the king will choose the best successor for his offspring-whoever that may be.
Breeding and politics events
Infidelity-Arranged marriges do not alway work. If too many social norms and allignments are crossed -there may be a greater chance that the union fails and political rest (displayed as lower productivity or the ability to amass troups or less dipolmatic power or loss of vassel states) may result. This could be modified by the trait of "passivity or willfulness"--you may want to breen passive sons and daughter who will do what they are told (for political stability)- but they will likely not be the best leaders.
-event-infertility--every now and then there is a chance that no childern are produced in a royal union. Polical unrest is increased for a bit and you have to go back down the bloodline.
-True love- every now and then, love between between two people will not be denied despite you best efforts. You will just have to make the best go of the situation. Not likley with passive folks but more likely for willful characters.
Incest-an easy way to keep good genes in the family and holding onto power if socially acceptable. But to represent inbreeding there should be a 10% each generation of gaining a deleterious gene.