I wish to add that, although I do share the same emotions as others on this topic: Reducing the faction loyalty altogether might be good for the game, but we need to flesh this out more.
It is something, and good, if I never want to have to see someone apologise for going another side again, because if we all can/are able to do it easily, then it won't be much of a "crime" anymore. This is a game; not exactly a question of morality or ethics or social design (gaming does fall under gambling though, even if it is reduced by associating the attempt at realistic design simulation).
But to have a full picture, we have to consider the other possibilities: This might be bad for the current state of the game; where people are feeling insecure about the future of the game with other competitors around and the disillusion of the older players weighing down upon the new players at times. Maybe faction loyalty is what is keeping all of this together?
I would instinctually come to the same conclusion as my first impression, that removing the limit almost altogether is good for the game, but not just because of the removal/lowering of faction loyalty, but because I have hope that removing limitations in a timely manner can help this game grow again without the need for advertising (that may be just a result of my own enthusiasm for the genre and not shared by others). HTC have a much clearer picture of what is keeping the seams together of course, then I or anyone else does, but what do you guys think?