Yeah, that did throw me for a loop first time I saw it. I just call it the Iseijin (after typing it a few times you get the hang of doing it without typos).
As for allying, I dunno. Even going neutral, meh. Who would knowingly get in bed with infected humans? And our front in space isn't "organized" enough (we got KNF, BD, etc. ships) to say we're anything but Nomad-controlled if it came down to it. If you get what I'm saying.