Look again at the link you posted. The speaker you’re referring to is a lord – in other words, a noble – and he specifically says that his family owns the land, although they’ve turned over actual governance to the mayor. Which is pretty much exactly the sort of thing I’m saying.
Regarding central control of the military – theoretically speaking, that was the overall idea behind feudal structures as well. A noble rising against his or her monarch is treason, and possibly viewed even worse than disobeying orders or desertion is regarded in a modern military. Nobles fighting among themselves isn’t viewed as badly, but most monarchs probably disapproved of that unless the monarch was concerned that if the nobles weren’t fighting among themselves they might turn on him or her. Either way, legally speaking, the crown is still at the top of the chain of command in a feudal structure – the lords just had more freedom about what they could do when they weren’t under orders (which was largely necessary at the time as it was impossible for gw2 gold eu to micromanage everything in a kingdom in the way a modern army does).
It’s certainly a looser structure than modern militaries… but then, so is the Seraph. While technically answering to the queen, more remotely located Seraph captains seem to be largely autonomous, and whose to say they aren’t being supported by, and in practice placing their loyalty to, the local noble(s) more than the queen?