That's a good point Baba. If those royals would live among the people, and suffer and glory with their people, they'd probably have more overstanding of what the people need.

One reasoning against that though is that royalty's primary job is dealing with what would be termed foreign affairs, diplomacy and such. The day-to-day management of a nation's affairs are usually placed in the hands of a local government of sorts, either through a vizier or an established bureaucracy.

With those things in mind, it may be seen as better for the ruler to live 'above' his people, to inspire them at home, while appearing regal and 'special' to those abroad. This is just a thought, but more time the ruler can maintain more respect at home and abroad by not mingling and living like 'common folk' too often.