Remember that Former Ruler you find all drunk and depressed? Rightfully so if his story holds water more than the ale in his mug.

Well, say that he is telling the truth. Why not have him as a possible NPC to give out a quest to avenge his kingdom and his family? I'm betting the reward won't be that grand in terms of coin, but maybe a sword, honor and Right To Rule would come with it?

Another possiblity is that you could either recruit him as a Companion and/or give him land as a Vassel. If he comes with a quest as well as this feature, maybe dependent on whether or not you completed could defined which nature he might be. Good-Natured or Upstanding if you completed it, possibly if the quest has multiple concultions you'd need a good ending, or Bad-temptered or something of the like if you did not complete it or got the bad conclution.

Just some fun thinking, if he is to remain as flavor text then that is fine by me.