Might as well not discuss lore unless you want to change how the server works. Trusting people to maintain their place is silly, because it's not trust that regulates behaviour, but possibilities and economics.
Is it possible for me to write that X faction is as big/powerful/can take on a house? (GC/HF/Zoners/Corsairs/Outcasts/Hessians/CR/Phantoms) Yes it is, so that's what people will see happen, whether it makes sense or not. This can even be reflected in ingame power, since that's based solely on how many people you have within your faction, since the current balance system requires everything to be similar.
However, because everyone writes the lore of their faction to be bigger and more powerful in an effort to be special... this actually results in everybody being the same in the end. Ironic, isn't it?
But, there's no point to complain about X faction being able to take on militaries or houses unless you're actually willing to change how this game rewards and punishes player actions. That requires a lot of sacrifices which I doubt most of you who are complaining are willing to make.