I was a Hudson goon from week two of playing until about six months ago, mostly because you start the game in Federation space.
I quit because there didn't feel like any reason to stay Federal, especially since I had long since stretched my jump range into all corners of the galaxy in the meantime. But I like Powerplay, and I missed it, so after hopping around and collecting weapons (APAs and Packhounds are especially tasty), I found a new home in the Empire with ALD. I like the bounty bonus and actively maintain rank by participating in expansion efforts.
But like you, I don't see the big benefit.
I'm still not convinced there's incentive enough to keep basking (let alone encourage new players to bask along), so here is my PP endgame wishlist (in addition to wishing Her Imperious Majesty would grant me a land title in Malaikudi. I'm a Prince, for crying out loud.) :
1. FIX THE MONEY. 50 million for Rank 5 seemed like a lot when I was new, but I've never bothered to go for it. 10,000 merits is a stupid threshold for an amount of money I can make in two days of a Bounty CG. Payouts should be adjusted, PP supply hauling should be compensated with decent pay, and Powerplay combat should pay an actual value slightly ABOVE civil war CZ combat, instead of the pittance it offers now.
On top of this, there should be a proper title attached to each rank and a rank decal for your ship. Maybe you could make these conditional on maintaining the rank. You go from Rank 4 to Rank 2, you lose access to Decal 4 and have 2 only. Quit LYR altogether, for example, and lose his decal altogether. Which brings me to...
2. APPROPRIATE SKINS AND DECALS. The free PP decals available now are a brilliant gift, but take it further. Make a standard Naval skin for your superpower available at week 4, possibly conditional upon service. Add new faction-themed Ace skins for exceptional service or participation in campaigns. Introduce campaign ribbons, and have a ribbon rack decal that displays as a ship nameplate. Make squadron decals featuring dangerous animals, lightning bolts, heraldry, etc. available when you increase rep with a superpower minor faction.
3. MAKE ALL PP REWARD MODULES IN ALL SIZES. I would love a Class 1 Packhound launcher as much as a Class 3 Pacifier Cannon*. In fact, the Pacifier is a great example of what's wrong with PP weapons in general.
I have an all-frag FAS. All four frags- 2x class 2, and 2x class 3- are modded for double shot, which greatly ups DPS, but shortens range. Pacifiers have a built-in range increase, which makes them ideal candidates for the Double shot mod.
But what happens when I want Pacifiers on my FAS? I wind up with two extremely short range large slot shotguns, and two longer-range medium Pacifiers, which makes them hard to coordinate at anything longer than point-blank range, and wastes ammo for the big guns if I group fire all four.
So in the end, Pacifiers are neat, but kind of worthless. Maybe on an FDL or Gunship, otherwise...
Let me buy regular Class 2 Pacifiers at Week 4, but at Week 6, drop a message that says "President Hudson thanks you for your continuing loyalty. Class 1 Pacifiers are now available from Federal Quartermasters." Class 3 at week 8. Class 4 at week 10.
This would also get FD to finally create class 3 and 4 rails, torps and missiles, which are still unexplainably missing. A Class 4 Imperial Hammer needs to happen for my Cutter. And I would love an all-Pacifier FAS. Which would make me return to Federal space for quite some time to do #4:
4. REWARD ROLE PLAY IN POWERPLAY. Reduce my merits if I have the poor taste to show up to a Crime Sweep in my Federal Corvette, which I do, weekly. Increase them slightly for hauling Garrison Supplies in a Cutter, as Her Magnificence commands. Give me 5 free merits for every week I sport an Eagle on my flight suit's shoulder, and 5 for having the proper livery displayed on my ship. Basking in Her glory is rewarded, but merely pretending to care is punished.