The idea seems good but my guess is that the faction would fall apart whenever it was faced with a tough diplomatic decision.
That doesn't mean that the structure that we use is the best though. In my Guild Wars guild we had a rotating leadership system. Every couple of months one of the officers was made Guild Leader and was in charge and all that and then it changed. Of course, beyond that we had the Council members, the older folk that created the guild, but seeing as we were a small group they had little influence. Over the years I guess I was the Guild Leader for half a year. Yay for me.
