We don't need to protect official factions that have no interest in playing the game. Let them die.
What this system is really in dire need of is an overhaul to encourage factions to log on more frequently but for less time. That way, organic encounters will occur more often on the server and give factions more to do - rather than how it is currently where major factions are literally not even playing the game for three months then grinding all their activity in a couple of days just to cling onto some imaginary power in a game they have no actual interest in playing or contributing to whatsoever.
Edit: e.g. A relatively undemanding, fortnightly activity check. With a limit on the number of times it can be failed within a 12 month period. Something like that.