As this is an rp-server, I was under the impression that role-players find role-playing to be it's own reward - both as an indie and/or player faction member.
I'm probably being cynical, but many of the pro-player faction ideas seem to me to be only thinly-veiled attempts to wield power over others. Lording over others is fun, especially if you really aren't in a position to lord over anyone in RL.
With the exception of my membership in the BHG (a non-typical player faction in some respects), I have played indie characters. They all have belong to some faction, without being in player factions.
Sure, I can fly most any class of ships that I want. In theory. I don't have to jump through any hoops and "prove" my worthiness to some group of individuals I don't even really know. In addition, I really don't have the time to dedicate to a player faction, even as a grunt. Thus, I am an indie.
Being an indie isn't all roses. Player factions can be veritable forces of nature when working together for common goals. An indie is pretty much all by his lonesome.
@Cannon: I respectully choose to disagree with your premise that player factions contribute more to the rp-development of this server. I believe that those with the most time at their disposal tend to contribute the most. The people that write character stories, news flashes, after action reports, diplomatic messages, etc.
The lolcap menace is quickly becoming a thing of the past. Honestly, there aren't many places or situations that you can use them in anymore. If someone is being a dunce in his cap, write up the sanction report. Pretty simple. If a player faction sees someone misbehaving in one of their caps, same process. While there are many decent faction leaders out there, they are still, nonetheless, subjective and human. Giving player factions the power to judge a player's rp-worthiness prior to allowing him to fly a relatively easily killed ship, does not earn my unconditional trust.