Kicking out NPC faction

But we can take control of all the stations correct?

You can, but it might be strategically unwise to do so. It's often useful to have one station run by another faction that you can use as a pawn to protect the king - if you get into a conflict/election, you might possibly lose the system. Having a clear #2 faction with a station in second place allows you to use it to block a rival faction.
 
Your #2 faction doesn't have to control a station to protect you. The only advantage to leaving another faction with an asset is to protect the mission board in the event of a Lockdown, but even Lockdown isn't that damaging of a state as Universal Cartographics is s available and it's usually short lived.

There is only one time lockdown really hurts and it only affects factions that don't control a station or exist in another system and the system controller owns all the stations and goes into lockdown. That pretty much leaves you with no BGS options.
 
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