Most likely the mentality of the community regarding factions has changed a lot, and with the concept or purpose of the factions changed, the rules and structures that supported the existence of the old style factions was rendered obsolete.
If indies of said faction can do as well as those inside an official faction, then that means that having an official faction serves little purpose for playing said entity.
When folks created the first "roleplay bound" factions, what did they expected of said creations? What purpose does today's community give to factions that exist (purpose other than being the medium to employ the byzantine rule system of factions)?