Actually you'd be quite surprised Duke. I used to play on a strict RP server that each player could only be in one faction. It actually increased RP, and VERY few people wanted to be "loners" because the factions were actually cohesive and worked together, as any faction play, was with the same people, frequently.
Honestly I really do think it would put RP more into focus.. Just my two cents really.
as for Mal.. well he's always been a bit schizo since I've been here at least... lol
EDIT:
Just so people don't get me wrong.. I am not saying we need to or even should change to a 1 char per faction.. Disco has been the way it is and doesn't really need that magnitude of a change.