And I agree, Diplomacy could really use a kicker. That, and character development. Skills or skill trees would be awesome.
Oh, and making the dynasty system better. Or making the factions more varied/different. (Or giving me Orcs, Elves, Undead, or other similarly drastically different factions.)
Ooh, the possibilities. Could you imagine factions as varied and cool looking as those from FFH? That's part of the excitement for me in FFH, just meeting the different factions.