I can only hope FDev take this into account in the future. I am assuming they shut down the player factions because they were running out of systems, but with colonisation I would assume that balance changed. The problem now is that anyone aligned to a squadron with a player faction has already got a player faction in their system.But since you can't add a new player faction to any system any more, that doesn't matter
Maybe I'm unusual here, but I wanted a system not aligned to my factions goals so I've had to BGS it to get someone else's Imperial Anarchy faction (there were no local npc factions) into the system I am in, in order to make it a wretched hive of scum and villany.