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One of the coolest new features that really makes The Sims Medieval stand apart from its predecessors is the use of quests and kingdom ambitions.
The ambitions are broad over-arching goals that range from simply building up your kingdom to seizing power in all neighboring territories. You satisfy the ambitions by completing a number of specific, smaller quests.
You can pick and choose which quests to undertake, how you will approach them, and which Hero Sims will be involved. I really enjoyed this set-up as it gave me a satisfying amount of direction while still providing me with plenty of choices to make.
The quests also enabled a bit of story to form, which helped defined my characters beyond their traits and flaws.