Strategus is the only reason I play this game as regularly as I do. Without it, I would probably duel every now and then and that would be it. I know that some of the people I play with feel the same way. Keep in mind that our faction does things a little differently, and so our people are generally involved regardless of leadership status.
I mean, fuck, what other games allow you to fight for virtual land with the best combat system I've ever encountered? Granted, we haven't had anything awesome (maybe... that Order of the Fury Blades vs. Hate village battle) in awhile, but I remember one or two battles that conjured scenes from epics last Strat, and even more from the Strat before that.
And don't forget, we have fucking catapults and shit now- it's just that no one has the gold to use them properly.
I'm not too fond of the details (I like the broad strokes idea) of the current version of Strategus, but I have faith that it will improve.
Some things that could help improve individual playability:
Shared bonuses on player marriage- divorce incurs a penalty.
Assassination is possible, with 1 attacker involved in the battle only. If successful, it takes the player out of the game for a small number of days.
Champion Warfare option. Non-clannies with giant e-peens could offer to champion some faction or other.
Some sort of infiltration mechanic.