I think I said this when I first came to this server:
Nuetrality is bad for role play.
I support the concept of generic trader, pirate and military IDs. It allows greater flexibility for role play. Unfortunately it also encourages people to avoid role playing by creating totally non-descript and neutral characters.
In the case of the trader ID, it encourages unlimited money making without the natural culling process of piracy to keep the money making to a manageable level on the server. Someone who makes a trader called (insert name here)_Trader with a trader ID and no affiliation is not playing on the server to role play-he/she is there to make as much money as possible as fast as possible and use their neutrality as a front to avoid conflict (ergo avoid role play.)
The military ID encourages lawful PvP whoring.
The pirate ID encourages unlawful PvP whoring.
There are examples of proper usage of these IDs however. These people have come up with original role play concepts that are not adequately serviced by any of the existing NPC factions. Originality and zealous role play are good things and these IDs allow this to happen on the server, but we have abusers of this as well.
The cruiser piracy vs. faction conflict issue needs more explaination.