Warning, a long post ahead.
The nobles demands: The demands are standard items made out of exotic material. From a workers view it is no different than a standard item, as long as the material is present. But the availability of the material feels to be the work sphere of the "management nobles". So why are they creating extra work for their kind (or even themselves) and why do they "reward" a failed demand with permanent rest? Corporal punishments create extra work for the fortress and put the punished out of work. I understand why we need the random demands, as without them, things would get too easy and too predictable after a few years. So here are a few ideas how to set it up differently.
The administrative tasks: Needs a high skilled worker (legend) for a promotion and you lose him as a crafter. Requires all the special rooms and requirements as before, but has no additional demands.
True nobles: They come from outside. Are considered special because they can trace their line to the grandfather of dwarfs (or something) and can thus afford to be the royal pain in the butt. They are needed for diplomacy and prestige rating of your fortress, which can be a requirement for other "improvements". They have the usual demands and expect a compensation if the demands are not met, some punishment for the offender, or, in worst case, they all leave the fortress. Giving it a very bad reputation.
The starting goods: I always envision the seven as having a sponsor who provided the goods, but should eventually demand the return payment, with hefty interests.
The king: A fortress is not independent and shouldn't there be some kind of yearly tribute to the king and some random exotic demands from him?
Getting your own king: It would be great if it came from your own management/nobles. With enough prestige points and the high enough tribute the fortress becomes independent, starting it's own kingdom.
Or not so long.
[ August 29, 2007: Message edited by: Mlittle ]