They have their groups, whatever they change it to, people will gravitate to their buddies, no matter the banner they're flying under.
Absolutely. Replace Bishops, Knights, Rooks with Red, Blue, Green and people will be loyal to Red, Blue, Green. Replace them by 1,2,3 and the same will happen.
Forget countries. Squads. Your squad starts out with one base, location randomly generated. First squad to 30 bases owned wins.
The imbalance would be incredible. Off hours, 20 to 40 players online. One squad manages to have 6 players up, but all the rest are technically single pilots.
And what about those people not in any squad? In this case, you probly would have to make the game round based and put the players into random but evenly distributed squads.