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That's why its broken.

Actually there should be seperate BB system for vassals. The current BB system in most Paradox games works well for foreign relations, but there should be a parallel one that is based on your domestic policy to reflect the ability to remember that you tried forced 2 of your vassals to give up their titles.

That doesn't have any real impact on how the rest of the word (outside maybe the papacy) sees you, but it should have long-term effects on how the rest of your vassals see you.

That's about as perfect a solution as I can imagine, although I would take it farther and separate foreign and local badboy by religion as well. Catholics shouldn't hate you for taking the Holy Land, but if you take half of France, there should be quite a bit of anger.
 
What I'm proposing would make strategic marriages a much bigger part of the game. A marriage between feuding clans might help stabilize relations but even entering into negotiations like that would require a highly skilled diplomat (which should be a far scarcer commidity than in CK1).

I like your proposition. Keep them coming.