I agree with your points about more then 2 sides. I remember Todd talking about an idea in the Dregs where as the game progresses, the guilds have to condense down and there are less and less sides fighting until it gets to the end. Maybe with the 3 faction world they could condense the third losing faction to one of the other factions making it a two faction fight at the end. Not sure if that would be to have them join the losing faction or to split the faction among the two. But it might make the end of the campaign more interesting.