The only deviation from this are player made factions, where its vassals will retain the old title of Lord. The vassals of the default kingdoms no longer have the title of Lord, and their titles change depending on the faction they belong to.
You can also properly create your own kingdom and rule over vassals as can any other kingdom's leader. The Overland map has been completely rearranged to accommodate the new faction. The expansion includes a new desert-dwelling faction named the Sarranid Sultanate.