http://www.britannica.com/EBchecked/topic/205583/feudalism
The idea of feudalism ,even if we disregard its origin, is of mutual dependancy do you not wonder why the feudal system almost ceased to exist as soon as the kings themself could sustain their own armies and no longer where depandant on the nobles?
My question isn't regarding it's origins but what are the benifits to the emperor himself and how does this make it an better alternative to give counts the land rather than to appoint governors?
Also there it seems like the emperor indeed appoints the counts as an in game rumor states something like this "How did a Dark Elf become Count Cheydinhal? King Helseth and Barenziah have considerable influence, and Helseth and Indarys are cronies. Get it?" Helseth hasnt been the king of Morrowind for that long so the count of Cheydinhal must have been appointed by the emperor.
Regards
The Mage
I know this post was a while back, but I have to point out why I disagree with it.
First off, Feudalism never ceased to exist. Any in depth study of modern western culture will show we still use it to this day. Classic example, the declaration of independence. That is a feudal document. Such a document only makes sense in a feudal system. The U.S. gov't is quite feudal as well, the "king" or fed. gov't has so much power, but trusts his vassals, that is state gov'ts to run most of his kingdom's affairs. These vassals in turn have their own vassals, which most states call counties (oh my!) Some states break it down even further, and the counties have townships. Feudalism never ceased to exist once kings became powerful enough, it just adjusted slightly and stopped being called that. Right up to modern times the old aristocracy inherited lordships and such in England, France, and all the countries that ever actually were Feudal. (Germany, Italy, and Spain never really were feudal nations if you get right down to it)
Now, my answer as to why this is beneficial to the Emperor? Why not? If the emperor leaves local governments with the power, then that in turn ensures the loyalty of the people. Rome did this all the time. Think of the Herodian dynasty in the province of Judea, for example. In ancient systems, local leaders were very often given control when somebody new moved in. And even if there are lots of hereditary rulers in Cyrodiil, the Empire can move in whenever it wants to switch things around a bit.