Whilst I completely agree that in terms of army vs army clashes, the levies don't matter at all, and I too have seen 8 vampire knights kill off an opposing army of 6k levies, I would respectfully disagree that levies are worthless because of one crucial element: sieges. Having 8 super powerful knights is great for defeating armies, but you can't siege with them, and this makes bigger wars very long and protracted, because while I can play whack-a-mole with the enemy armies, chasing them down and defeating them with my 8 super powerful knights (as my tiny amount of levies die off quickly), I can't actually end the wars quickly because I never have any levies to siege any of the enemy capitals. This makes wars extremely unfun and long lasting, and for example in my current Assamite game, I routinely get attacked on multiple fronts by multiple wars, and not being able to quickly siege to end a peasent rebellion or independence war is quite frustrating.
I highly recommend your team reconsiders adding in a feudal levies option into the custom Covenent Feudal Contracts because it would be very helpful in situations such as mine. Plus it would allow us to rightfully claim the Dynasty Head title too. I'm currently the Emperor of Alamut, Old Man of the Mountain, but I'm not the Dynasty Head of the Banu Haqim solely because I have no levies to speak of. That's just not quite right.