I agree. The Path of the Governor is pretty much useless now as it is. In War of Magic I actually used champions as administrators, though I can't remember what they actually did. In order to make governors useful and a viable choice, I think the following should be changed:
1. Make all cities give XP to champions (or maybe just to those who chose the Path of the Governor), preferably a low initial value (like 0.5-1 XP per turn) that can be improved by buildings that can be built in any city, not just a unique building. Perhaps the Town Hall could provide a XP bonus.
2. Besides reducing unrest, which is pretty much useless since unrest is easily manageable with a couple of cheap buildings, give some perks that do more useful things like increase the growth, production and gildar of a city. Make these bonuses % values that increase with the perk level.
3. Make special and exciting governor perks that give really cool stuff to the city they manage, like Militia Captain - increasing the defense of the city militia, Scribe - +1 Research per turn, Cultured - +1 influence per turn (this should be a really high level perk), Quartermaster - all units trained in the city start at +1 level, etc. you get the point.
All these changes combined would make keeping a champion in a city and making him governor rewarding and exciting. I would really love to see changes like these implemented. It seems like an easy thing to do and would add depth to the game.