there are two problems with this suggestion - you have to get players to leave their kingdom and you assume it will solve a problem with lack of kingdoms in range. Here is why i believe this suggestion will not work.
Problem 1 - kingdoms are struggling to meet the 25 player requirement - reduce it and more kingdoms will be full
Getting people to leave a kingdom. Ways to accomplish this are:
Tell kds they need to have X players at age end
Reduce kd max and let players naturally leaving meet this number.
I believe this will not work because kingdoms, while they of course drop players and replace them as the age progresses, will not want to be the first top kd to run with 24 players. They will ensure, probably through illegal methods, that they do not lose a player advantage. So you encourage people to cheat which is bad - then when they do cheat they get caught and deleted, so you've lost a player either way. It is also possible that a kingdom will not lose a player in the timeframe you set, then how will you select someone to leave? You are kicking someone out of their kingdom. This is not a good idea.
All kingdoms will need to be equal also - otherwise it is not fair. Therefore all kds must lose the same amount of players at the same time. It is doubtful this will occur naturally, so monarchs will have to kick out players - that conversation doesnt really sound like fun and one designed to endear players to the game "hey, we gotta drop a player - we picked you cos you suck the most, gl finding another kd with the rest of the rejects though <3" - i dont see how this will not cause unnecessary issues.
This is, ofc, only one issue - and probably a side issue to what you believe your suggestion will accomplish (if i have made incorrect assumptions please tell me).
Problem 2 - there are not enough kds to war. Reducing kd player limit will increase competitiveness by creating more, fuller kingdoms.
Well, it will create more kingdoms for about 1 age. After that you will still have kingdoms with 20% less than max. Same as we have now, same as we had on genesis. People will still leave, ghettos will have trouble persuading people to say, others wont like their kd etc etc etc
Reducing KD max players does not solve the problem - that we need more new players. It will annoy our current players and temporarily give top kds more targets - remember, top kds will be the full kds and the ghettos that get reallocated players and are now full will be fed on, hardcore.
You'll have an age of having a few more kds in range and then those kds will struggle again to keep their players at max and we are back to square one - < 10 will be the new ghetto instead of < 15 or whatever. You cannot keep reducing the KD max players number age after age.