There is much more romance to Aragorn declaring an edict protecting the Shire from further interference from men, than there would be in some lawmaker proposing a bill declaring the Shire free, and then debate and argument from representatives of Mirkwood, who want the same freedom, representatives of Harad, who think Hobbits cannot be trusted to self-rule, and then representatives from Rohan, who tack on an open space preservation ammendment that gives the pastures of Rohan tax-free status.
Give me the romantic rule of Kings, lest C-Span bore me to tears!
To put in another two cents for home rule, Aragorn may well have issued an edict banning outside interference, but it was the local populace taking up arms against their oppressors that finally restored freedom to the Shire. Nothing quite like a little home-grown revolution!
Lest you think, however, that I tear through fantasy novels continually screaming "Death to the aristos!", I should say that I am a long-time fan of British literature and film, many of the best stories from which focus on the upper classes, so I certainly do understand the appeal. Don't take my libertarian opposition to the feudalism of LOTR too seriously!