Ultimately, whether PP has an effect on the Story is moot what is not is that it has an effect on the single shared universe state.
Powerplays only effects on the galaxy is via the gov types it imposes on bubbles and minor BGS quirks. Beyond that, its practically its own layer. The proposal would cut that down by a factor of 15 to just capitals and control systems- in effect making Powerplay powers the same size as large PMF BGS factions (in number of systems).
Further more, PP is predominantly a PvE activity and while some may choose to try and use it as an excuse to engage in PvP they seem to not accept that PvP is optional in ED as a whole.
It is currently. However that PvE is grind collecting or grind hauling. You are arguing to keep the grind and nothing else because the default state thats most efficient is solo and PG (with its ineffectual NPCs). Open is more chaotic and unpredictable, which in turn breaks the grind enough to make it interesting- no haul is 100% safe, and UM / expansions / prep are more dangerous (and again not 100% guaranteed like it is in solo or PG).
The overall approach to PP is PvE in nature and should remain that way - PvP being an optional and incidental part of main environment gameplay as a whole.
PvE in Powerplay is the same 2 jobs that promote grindy gaming, because the NPCs are there to be farmed and can't oppose you and affect the outcome (because that would be unfair when Powerplay is 100% player driven, and yet subject to BGS RNG). So the choice is have every mode the same, which exerts downward pressure for everyone to grind efficently, or you lock it to one mode and keep it there to make it even. This would either be solo (which would be fair, but incredibly dull) or open, which as I pointed out above and elsewhere have a greater potential to be dynamic and uncertain.
The long and the short of it is that if people in general want more PvP oriented gameplay in the main environment they should be looking at ways of "adding relevant mechanics" rather than trying to get existing gameplay modified to suit them and effectively try to force other people to engage in PvP when enjoying existing base content.
Well, its 'people' as in FD that are continually thinking adding relevant mechanics, just they want to do it as cheaply as possible since Powerplay has already burnt them once.
Myself and
@RamirezKurita have put forward counter proposals to this end and those ideas could be built on.
Which are nice, but unworkable given the time FD are willing to put in. They would have to work around the BGS tick to work -so at best you
might see one or two extra PP NPCs due to limited NPC spawns (to balance them with regular traffic numbers), and only see these marginal changes happen seven times a cycle. USS / CZs get around that but then we are into RNG territory, and that it makes everything look static.
The problem with Powerplay is that FD won't tell us when or if it will be developed again- the only definitive information we have from that is the Flash Topics, and they try to make it attractive without great cost attached- hence why its all maths changes with no new extras (or that 'meaty' items like PP missions are vague). The option with most potential from that topic is Open, with about 5 points for 5C- it makes players much more important.
If Open is not enacted, the proposal will do the following without it:
Powers will vote drop unprofitables and gain a wad of CC (making them turmoil proof- i.e. stasis)
Powers will still consolidate (i.e. stasis)
Mega UM grinding will make fortification a CG (because as long as an attacker attacks they have to fortify). This is without the Open payoff of (potentially) fighting your enemy directly).
Taking current fort patterns, unless a Power is lazy or does not scout (and is sniped) mega UM won't make others turmoil, leading to stasis (as it is now).
This does not even take into account this:
5C will swap to consoles (Who have unlimited numbers of commanders because they can make accounts on the fly) and vote back in the systems dropped in the first point. Should FD lock the game to one commander per console? Is that taking away content too, even though it breaks the feature? A PC owner at least has to buy another commander.
For what Open
can do check my earlier posts.
There is also a time dimension, because many of the organised groups that run Powerplay are walking away, meaning the massive co-ordinated battles and strategies that make Powerplay so interesting will probably be a thing of the past. FD don't really get that urgency- if they are going to do this proposal or have something totally different they need to do it soon.