When it comes to replacing minor factions, the first ones that pop into my head are the Inuit nations (about the most useless faction in the game), Georgia, Dagestan and the Crimean Khanate. Maybe even get rid of those pesky Pirates. Keep the Barbary ones, but the Caribbean / East-Indian trade theatre robbing ones are quite irritating..
Most of those smaller European states are a nice little buffer between Eastern and Western Europe, so they have their purpose in the game. Of some of the ones I mentioned above, I sometimes wonder why they're in the game to start with..
In any case, I think this is a great idea, but.. I don't think there should be a second British protectorate without also giving your competitors a little gift. Ceylon could be made a part of the Dutch East India Company (and maybe some other province elsewhere in the world could be gifted to the Dutch to make up for that loss) and the French East India Company should probably get a province in India as well..
I know that DarthMod adds an Indian province each to Britain and France, but having the individual companies as protectorates might make things a bit more interesting. And if we take the whole idea a little further, the next step would obviously be to have missions issued that can make the territories of the companies join your lands if you complete certain objectives.
But yeah, this is all wishful thinking until we figure out a way to add these new factions into the game. Anyone knowledgeable in this field? I certainly am not..
I'm just a dreamer.. And I dream of this flag waving over India: