Fishu, have you tried flying for one of the other two sides? It can change your perspective.
As to two sides, that can be a very fun arrangement, but it's hard to put into practice in a main arena environment. If you think it would make the arena more balanced, think about it. Under a 3 country setup, it's more difficult for any one country to dominate through numbers when they're fighting a 2 front war. In a 2 country setup it's very easy for one country to get a substantial number increase and put it to good use. Think about how unbalancing it would be just for a squad to show up in force at a time when the arena is evenly split. A further problem that a one front war causes is that it funnels most of the action into a small area, typically between the two shortest opposing fields.
The allied/axis set is also a fun setup, but doesn't lend itself well to a 24/7 arena. One side is always perceived as having an advantage, in this setup it would probably be true as the Axis doesn't have the bombers to compete with the Allies. It also makes introducing new planes a lot more difficult. I think the hunger for these types of setups can be sated through regular and special events, but I don't see it working well in a 24/7 format.
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Doug "Pyro" Balmos
HiTech Creations
"The side with the fanciest uniforms loses."