Just imagine when the emperor was a boy, his favorite stories were about the famous iron blade swordmages, a heroic school which taught it's proponents what the tales about them described as the 'ultimate unbeatable sword-style'.
These trashy tales were of niche appeal to the people of the empire, but they were extremly popular with the young emperor to be, and when he became emperor, he naturally decided that these brave and unbeatable heroes should be his personal bodyguard.
Not only this, but he takes members of the school as his advisors, makes them generals, court mages, and more. There's only one problem.
They're garbage. They're terrible fighters and worse at everything else. The tales about them weren't even that popular, and certainly weren't based on any real exploits. And they're terrible, corrupt, incompetent advisors and generals.
Of course the emperor would never tolerate this reality, and his handlers have 'managed' the situation ever since. All graduates of the school (which is now seen as a fast track to promotion and glory for those with a lot of money but no particular talent), are given enchanted items to make up for their shoddy swordsmanship and magic.
They're even allowed to use these items in competitions where magic enhancement is normally banned. This is of course enormously expensive, but it's better than angering the emperor by revealing the weakness of his champions.
As for the higher ranked members of the school, those who serve as generals and advisors and the like- well they tend to do a lot of damage, but having been educated in the iron blade academy, they know the score- they're amongst the most servile, petty and cunning enablers of the emperor's excesses, and they profit greatly from this role.
As with most people in such a positions, some are purely cynical, some are self-deluded true believers in the emperor's glory- but a suprising number manage to be both. Utterly hypocritical self-promoters who exploit and concel the emperor's folly, but also genuninly beleive is his perfection and glory.
PCs could interact with members of the iron blade fraternity in all sorts of ways, and might even do quite mundae things like purchase magicla weapons from them (they could even control the production used to arm them). And of course, they make great weasels, toadies, traditionalists, and schemers.