I am torn there.
Player interactions are good.
Player driven plots have huge potential to get players involved passionately - which would be what Disco lacks atm.
However, it leaves an ugly taste when the parties behind the scene (in this case Kusari Gov and GRN HC) do not agree on what is happening. Not roleplaying a situation is not cool. Total denial is not cool. Being steamrolled is not cool either. The solution is somewhere in between...
Guess a chance was wasted here, but perhaps the situation can be used to define what the status between Kusari and GRN is irply, and how it translates into the game reality so that both sides can play and have fun while respecting the lore-wise setting.