Not only could the Royal Family not control the political situation, allowing the nobles to grow powerful and oppress the people, but the people also had no platform to voice their grievances. This caused deep resentment to accumulate, resulting in six uprisings within a mere five years. If it weren't for their powerful army, it's likely that Schwali would have undergone drastic changes by now.
It was only after the accession of the new Queen that this situation began to improve. However, the obstinate noble power was not so easily overthrown. They were like worms embedded in every part of the state machinery, making simple repairs far too inadequate—it required a complete overhaul.
Therefore, what Mr. Fisher meant was probably to eradicate the nobility, which would also solve the problem of Prince Luosang, whether regarding the sheep-man or the political issues. Of course, this was merely a joke.