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As Shal said, we have not removed politics from the game (that'd be silly--some people really enjoy that stuff!). Faust and Tiyribi hold governor positions at present, as an example of high-ranking PCs.
What we are no longer going forward with is allowing PCs to hold the HIGHEST ranking positions. So we're not having any Archprelates or Emperors that are PCs, for example. They are more behind the scenes, creating plotlines and driving forces for the PCs to work with, so to speak. Jacob does a better job of explaining that particularly thing but that's the general gist.
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