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Any thoughts, ideas, criticisms?
I would criticise the idea on the grounds that it takes too much control away from the player. I think the system in CK where the decision can cause/remove traits is better than blocking options based on existing traits.
If the player wants to choose a certain option I don't think he should be blocked because of a trait - there may be special reason why you want your character to take a decision which goes against the traits.
 
I feel a characters traits should dictate the options a ruler can select.

But one can argue that it is already the case - some events (with choices for actions they offer) trigger only if the character has or doesn't have certain trait(s). Though I understand you meant options in a Action Screen, which are currently static (except for the Pope controller).
 
It would be good to see traits expanded and logicalised alot more, expecially with the new engine, the possibilities are quite promising. For example, seeing more trait specif events firing, and preventing contradictory events.
 
I don't think control should be taken away from the player, so if he has a Cowardly king, he cannot select non-cowardly event options etc.

But it would be nice if the AI characters played more to their traits. So an AI king who is Weak Willed and Cowardly, might be picked on and bossed around by his vassals and/or advisors, while a Cruel and Vindictive ruler would crush any who might have slighted him, no matter how small that slight might be.