To he PCs of course it makes perfect sense. Of course as a GM somebody needs to think about how the population would react to this.
At the very beginning, they will probably be too concerned about living day to day to worry about such things although you will always get some people whose principles outweigh their survival instincts. Almost as soon as the basics become stable however they'll be looking for more.
Even the majority of the large scale despots in the TK2 canon have a semblance of representation for the people whether it's the Krakow council or the Barons of the Margravate of Silesia. Even then there is an opposition that causes the regimen serious trouble with that trouble rising proportionately with the amount the rulers exert control over the population.
Now, if your PCs are relatively benign and share and share alike as well as possibly having a method of people giving their views or airing issues they think are unfair, they may get away with it for a long time. Maybe even long enough to achieve their goals. In teh long run however, people will want to keep the majority of the fruits of their labour in order to have control over their own lives. A totalitarian government no matter how benign is still a totalitarian government.
I think that one of the reasons why some large military units do 'trust' populations to give them food in return for protection is that they are reluctant to use martial law to sieze all assets and seek total control over the populace in case it leads to an insurgency.
It's your game however and you are more than welcome to run the game in any way you feel realistic, in the end the game's all about having fun. I know you don't need to have my permission to do that but I hope you do have fun anyway, especially as you sound as if you have an inventive group.
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