From an in-universe perspective, it doesn't make sense for all factions to equally dislike each other. It does not make sense, regardless of how heated debates get in the Federal senate, for Jerome Archer to dislike Felicia Winters as much as he does Yuri Grom. Does it make sense for Admiral Denton Patreus to shoot down the ships flying the flag of his boss? Does it make sense for Sirius to sully their relations with the Alliance prime minister by attacking anyone who works for him?
From a purely mechanical perspective it is limited, and expansion would be beneficial. Changes in galactic politics per in-game events would feel less disconnected from experienced gameplay. Further, for community goals or equivalent all-players events it would be sensible for factions actively asking for assistance to allow for said assistance to arrive unharmed. It also opens back up civilised space at least marginally to those invested in powerplay, should aggression of powerplay-related ships be increased, allowing for interaction with player-run events without giving up on the feature. Situations where game features and community events are in conflict should be avoided.
There's no need for friendly or neutral factions to roll out the red carpet or bend over backwards for other powers' agents, but there is a wide range of behaviours between outright aggression and being the best of friends for all time.
From a purely mechanical perspective it is limited, and expansion would be beneficial. Changes in galactic politics per in-game events would feel less disconnected from experienced gameplay. Further, for community goals or equivalent all-players events it would be sensible for factions actively asking for assistance to allow for said assistance to arrive unharmed. It also opens back up civilised space at least marginally to those invested in powerplay, should aggression of powerplay-related ships be increased, allowing for interaction with player-run events without giving up on the feature. Situations where game features and community events are in conflict should be avoided.
There's no need for friendly or neutral factions to roll out the red carpet or bend over backwards for other powers' agents, but there is a wide range of behaviours between outright aggression and being the best of friends for all time.