Maybe they should implement the 6 factions into strategus and you have to decide who you fight for? There could be internal power struggles over leadership of the faction. This has also been suggested (by Knute I think I can't remember). The point is that just because people are allied, doesn't mean it's a bad thing.
I do kind of like the idea of the default factions existing as an angry AI who randomly declares war on a whim with other factions. The 6 faction system from single player could actually have some merit; interesting idea which bears more thought anyhow.
I'm starting to become confused on why some members of the NA community are starting to consider two single factions allying with each other a "large alliance." I would think that would require at least three. 
Well, these are very
large factions; KUTT and Hospitaller have a fairly high amount of active players, and the assumption many make is that the vassals of Hospitallers (and perhaps those of KUTT) are part of this alliance. Even if that's not the case, you've still got these two very huge factions declaring fairly soon after the start of the round that they are going to be allies with all which that entails.
It would be like TkoV and FCC instantly doing the same, which is ultimately akin to what is going to have to happen if there are to be any real challengers to this first alliance. According to the cRPG ladder they'd still be behind in numbers, though this isn't factoring in inactives, alternates with the banner, and vassals on both sides of the divide.
We (CHAOS) decided to ally with our pals The Pale Horsemen (FIDLGB) right out of the gate, but we're both fairly small clans in comparison, and probably don't meet the numbers of even one of these two groups when we combine our playerbase (we wind up with around 50 combined on the ladder, with some of those not taking part in Strat).
