As governor of Britain on GL, I have to agree that this system has issues.
1) Relying on Mesanna for all the deco/offices. Unless she has unlimited time, doesn't need to sleep/eat/socialize, or is actually an AI this will never work well. She's only one person already spread thin across all the shards EMs and that's on top of her regular producer duties. Having to juggle EM event requirements AND Governor stuff is a no-win scenario.
Improvement ideas: Mesanna gets an assistant to take some of the EM load off (Highly Unlikely). The EMs are given more responsibility/abilities to manage this system and place deco or spawn for events (see point 3).
2) Communication with your citizens. This was helped by the bulletin boards, but, lets face it, people are lazy. If it's not right in front of them, most won't bother to seek out the board.
Improvement ideas: Either a city specific chat channel (that can only bee seen on the chat list by citizens) OR treat city citizenship like a guild and give it a similar communication method to guilds/alliances. The next option is giving the governors the ability to put messages on the town criers. (If abuses of this cause you to lose your governorship, few governors are likely to abuse it. Cities need a public bulletin board for noncitizens to see what is going on, we don't need artificial walls separating people, UO can't support that with such a small player base.
3) The EM Program. From everything I've seen, at best the program could be called wildly inconsistent. Some shards have regular events while others have few or none. Some EMs decorate, some don't. Some interact with their communities outside their scheduled events, most don't. Some happily lock things down for player events or plot lines, others say that its against the rules and they won't do it.
Improvement ideas: Normalize the EM rules, all shards should be treated exactly the same. If EMs can deco or lock things down for players on one shard, it must be available on all shards (which have an EM). Players on Shard A should not be told something different on Shards B or C. The rules for what EMs can do should be publicly posted on the UO site (no, directing people to a random thread on Stratics won't cut it). Things EMs can't do (or things they have ZERO power over) should also be publicly posted so they don't have to constantly deflect questions or comments that should go to the devs. If the EMs don't interact outside their events or council meetings, the program loses value and becomes little more then a troll fest and rare item factory.
4) The Governor System. Expectations of this system are all over the map, some doom and gloom while others predicted a UO renaissance. Reality is hiding somewhere in the middle. Many people believed the system would be a way to improve the towns and breathe new life into them, most didn't grasp the fact that this would be nearly 100% RP. Player expectations weren't well managed from the start, nor have the systems limits ever been publicly stated. This has caused grief fests at governors' meetings as people demand changes that the system wasn't really designed to handle.
Improvement ideas: Manage player expectations with a post on the UO site detailing what the governor system is for. Explain what can and cannot be done within its framework. (Deco, spawning, lockdowns, etc.) Be consistent. Imbue the Elder EMs with more power if it is required to take the load off Mesanna, they've earned it. Work big changes into map updates, release them once or twice a month as necessary.
5) Spawning. People seem to like city invasions. While EM events usually cover that neatly, they tend to be fixed points and not random 24/7 happenings. Some people work odd shifts and would like a bit of fun at 3am on a Wednesday that isn't the same old peerless grind. Some people want something, like their city, to fight for. "Oh noes, Yew is under attack from orcs again! I must go rescue the townspeople!"
Improvement ideas: Let the governors initiate an invasion of their city by a random group of monsters, let it play out over a few hours or a few days. Put up a leaderboard for citizens so they can see who the biggest defender is. Players can already summon harbringers, vorpal bunnies, whipping vines, krackens/sea serpents, Scalis and for a while we had the ability to create ancient hellhounds (this needs to be brought back in some fashion), only two of those have ever been really "abused." If the system is built right, things are kept away from banks and moongates, there should be little room for complaint. Some form of limited spawning system for players, like set packages. Nothing uber, no big giant bosses rampaging through the countryside. Tether the spawn within say a 30 tile radius of where the package is deployed. Allow the spawner to name the creatures like pets and to place items onto the creatures as loot
6) Events. Player events will never measure up to an EM event or Mythic-created arcs, except for maybe plot wise. Players can't do anything that has even a temporary effect on their surroundings outside of a house, they can't spawn much (see above), and they can't "reward" players with the massive windfalls of cash that an EM item can bring. Unless an event holder is rich and they give away fistfuls of million gold checks or artifacts, their events will tend to be sparsely attended by the average player as it isn't 'worth their time.' (RPers will go to RP events regardless of what other players are there.)
Improvement ideas: Allow players a limited number of lockdowns that last for 3 hours or so via an event package, or create packages of lockdowns based on player feedback. Combine this with spawn packages and players could dramatically enhance their events and thus their shard. Now for rewards...these have sunk the EM program to some really dark lows and enriched the banks of the template of the week types. Unfortunately, this cat has been out of its bag for way to long. Changing it in any meaningful way now would be nearly impossible. The only real options are to either end all drops (and to put up with massive amounts of whining from those who live off them) or to give them like a holiday gift clicker somewhere during the event (and put up with the exact same people whining that they can't sell their item for as much). Either way, catering to the group that will whine is a bad for the EM program.
I have more ideas, but that's enough for now.