I do like the idea, and the examples shown in the booklet.
But it feels a bit light around the corners with quite a bit of work by the DM to fill in the fluff.
I think some of the old AD&D supllements would help quite a bit, like the Crusaders splat book from 2e (which covers quite a bit of the region, admittedly in a slightly different time) or the Testament campaign setting. I would also generously add creepy content from the V:DA books.
One of the pitfalls I can also see for these settings, is that the invented history line (and who is good/evil) will be controversial to some.
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