I am hoping squadrons eventually becomes the replacement for factions and powers. So you have player squadrons (player factions) and NPC squadrons (NPC factions) that are part of the BGS at system level. System states can generate conflict situations between player and npc squadrons. Missions generate for the squadrons based upon what the squadrons objectives are. System state and ownership changes hands dynamically.
As long as this results in scenarios which are more involved and interesting than the current rather thin mini-game-esque placeholders we have. ie: Surely we want more involved, varied and complex activies (combat scenarios)?
Stealth/covert related activities - Remember back in kickstarter days wasy cold/silent running was first demonstrated as all the talk of trying to sneak into locations undetected for covert scanning/assassination missions? Where's all that gone?
More complex combat scenarios - For example escorting/attacking convoys from from A to B in normal space? Defending/attacking a location or VIP ship being repaired for a given time. Full blockage mechanics where you exit SC much further away, and have to run or enforce the blockade.
Actually promoting/orchestrating gameplay for PvP in OPEN - Actively offering/orchestrating gameplay/activities in OPEN for those individuals interesting in PvP.
Note: All these more involved scenarios above could be equally leveraged in PvE modes to, not just PvP! They could also be used in Powerplay, Missions, and indeed even CGs. Again in PvE or PvP (OPEN) flavours!