I think in general the factions have no real impact on the game. I wish it was more of an open world pvp thing. Where if your on patrol and wearing a class item of say Fwc there were bounties to kill off dead orbit/new monarchy players. It would only be activatec if you wore a class item so if you just wanted to farm you could just wear a non faction class item and not be tagged as an enemy. At the end of the month which ever faction won, based on top number of bounties/kills, that faction would get a boost to resources, glimmer etc. Maybe it could give us a reason to patrol more and add more of a pvp element to the game.
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You realize the factions aren't actually fighting eachother right? It would make no sense to kill eachother in the field as 1. Unless they kill your ghost you're coming back anyway. 2. You are basically hurting your own goals by taking manpower from your own city. Thats like trying to improve foreign relations by banning races you find disagreeable, its assanine