i d suggest to take all the factions that are currently in use - put them in a spreadsheet
then link them to all the factions they are "hostile/kill on sight", "neutral" and "allied" to ( yes, lets keep only 3 states - unless you want to overcomplicate things )
disregard balance - just go by lore alone
then - look at the entire sheet - and check for balance.
when doing that - you should also write up why faction X is wahtever it is towards faction a, b, c, d etc.
once done ( i predict it to be a huge document ) - either submit it to the dev team or join up as story dev yourself if you have plenty of free time and love to be yelled at by certain community members.
and the above is quite serious. - if such a proposal was both - more logical and also balanced, there is no reason not to seriously consider it.
why is it not done every now and then? - cause its a freakin ton of work - and also - much of it is highly subjective. - imagine alliances cease ... that will affect the tech sharing - which will affect the players choices - ( most of all it might make existing RP obsolete ) - that will make players unhappy ... whowill turn on you ... accusing you for putting the final nail into disco
now - there is always a risk that you put hours after hours into a spreadsheet - which is simply not considered in the end - thats work done for NOTHING.
yea - happens a lot. - you have to agree to that if you wanne start deving.