Getting back to the issue of faction membership and how it affects your presence in-game. A BHer doesn't have to be a member of any playerfaction to be regarded as a fellow hunter as far as I'm concerned - I'll help a fellow Guild member in need, work together on contracts, share information so long as he opr she isn't being a complete twerp. Fellow playerfaction members I will probably know a little better, as we have a shared reputation and work together more.
The same goes for any other faction i.d.'s. If I see another Bretonian Police officer (hah likely) I'd assume he was assigned to a separate division and would work with him as a colleague. But I would be wary of how his behaviour might affect the BPA reputation. The tag in front of the name is easier to remember than any name itself when it comes to complaining in the forums.
I'm not sure if this is how all faction i.d.'s are viewed by everyone.