I disagree with the OP statement that factions are the main problem. Factions usually have people that provide leadership, both in terms of guidance and in terms of behavior to emulate. Factions also make people have to think about diplomacy before they pew-pew. That is not universal truth by any means, but as a general point I see less RP from indies than I do from any of the factions.
Having said that, I agree with others that the game is designed around combat, and you will get it from indies and factions alike. Go to Newcastle in a cargo ship, you will get killed by [M] as much as indy Molly or Outcast or Gaian, and it is in-RP to be pirated by all of them because that is how it is setup. Then I show up in my BH or HMS and blow them up, because the RP says I protect the lawfuls by exploderating the unlawful ships. So... seems to be working as designed
The downside is that there isn't much room for Shakespeare in a war zone. I admit I have shot many unlawfuls who were just trying to RP the bad guy but they chose poorly. Look its cool that Xenos like to RP freighter slayers in Colorado for deep philosophical reasons, but I engage Xenos on sight in Colorado, so if you want to be Shakespeare don't do it as a Xeno in Colorado okay? If there are outcasts and mollies and gaians killing cargo ships in Newcastle, I'm going to kill Shakespeare if he has one of those IDs in that system. That is the correct roleplay under the current design, your poetry reading is the ooRP part.
If you want a theatrical server, remove all weapons. People can "pew pew ur dead I shot u first" instead of using colored pixels
My own thinking is that its too easy to be a pirate, so we have a lot of ungrounded combat from them and also from the lawfuls that have to engage the pirates quickly or else the pirate just cruises away. The threshold is just very low for the amount of power at hand. Freelancers should not have access to gunboats or bombers or large cargo ships. Join a faction where there is hope of some guidance if you want more power.