Personally the suggested changes seem good enough for a new player like myself. They're obviously not airtight and can be refined and clarified further, but that can be worked on before actual implementation as it is definitely an aspect of Discovery that is sorely in need of a do-over.
Currently I don't see OF's as anything other than PvP groups, with everyone huddled behind a million discord severs, waiting for a raid to happen to log in. Honestly, not worth bothering to make a character that would join the faction if I can get the same amount of fun as a nameless indie. A lot of OF's setup seems also archaic and outdated given how few are actually left and what they can/cannot do. It would be nice if joining an official faction would feel more meaningful than it currently does.
As for some complaints that this would create too much admin work in the background from both players and staff - It's kinda hard to disagree. Both sides would actually need to show proper and consistent commitment for this to work.