I get what you are saying but actually we don't disagree on the main thing:
ME: make honour improve puppet empires because at the moment they are crap, and the other policies are already better for the other two types of empire (cap-centric & wide).
YOU: no! puppet empires are crap and no-one would make one so that's a waste.
lol.
More like "ME: Puppet empires were nerfed into the position they are now because it is a boring automated playstyle"
Venice?
Venice isn't really the same thing they atleast have somewhat control over their puppets (with the ability to buy things in them). Also they get a huge bonus to their traderoutes to compensate for their puppet empire. (Also even with that huge goldbonus aswell as their ability to pick and choose which cities to grab they aren't really considered a strong civ)