The main problem with the current Zonerfaction id whatever is less the restrictions put in place on the actual ID and more the inability to do things your way when your sharing the same IFF with two other factions.
I believe that option three would be the most sensible way of doing things, allowing each faction to carry on it's own diplomacy without affecting the others (and vice versa, allowing someone to be hostile to one without FR5ing the other two and indies).
Of course, the issue of who controls the un-affiliated bases (FP1, 2, 5, 6, 10, 11, Bethlehem, Primus, Gammu, Ames, Porto Novo, Lanzarote, Boa Vista, Gran Canaria, just to be thourough) would come into question, but the current system might be able to work there once removed from the three faction's main bases.
gone four years, first day back: Zoners still getting shot in Theta :|