Well there is no problem with this conceptually, I have a big problem for the conditions it exists in.

You should have to earn the ability to have any race in any faction, not have it be some preorder exclusive. It certainly should not be something that can be done right out the gate at launch imo. Any race can play in any faction, but it should not be something incredibly common.

So then imperials shouldn't have unique passives, abilities, gear....oh wait...

It really doesn't effect you if you choose to keep your character in their alliances, but for people who were complaining to get this I feel like you will be let down, especially the TES fans looking for freedom. First of all even if you pick another alliance your still locked to THEIR territory, secondly think of all the awkward NPC voice acting that will go on, they will all be talking to you like your are a different races, using the terms and all the specific conversations that refer to you as the race you choose within the alliance. They wont be taking any of that out and I can imagine not adding anything new in the bridge the gap, it is just goin' to break immersion anyway really. I think they should have stuck to their guns and added the explorers pack in later, at least only the people who think to and choose to pre order will be doing this so it wont be swamped with randomness.

But investors want what they want.

Can't wait to play a Dremora in any alliance

Two thumbs way, way up, actually. This isn't DAOC, this is TES, and apparently ZOS realize that.

The fact that you have to pre-order for it is another matter entirely but better that it is possible.

I bet post-launch you'll be able to switch alliances for $30 or so.