You're not wrong, but I think you are downplaying the faction loyalty aspect too much. If we have little to no loyalty to our chosen faction, then there is little reason to fight except to gain the bonuses or the fun of fighting itself.
Granted, it's not like anyone who isn't insane is going to be actually loyal, but a sense of camaraderie can be built up (Midgard > pansy elves and elf-wannabes) that adds something to the mix.
As to RP, it's all about numbers. RP'ers (of which I am one) is a subset of MMO players. Those who are dedicated, full-time etc are a subset of RPers. Then finally you have those whose primarily want to be non-combatants, then those who want to travel to other factions etc. Now that we have it whittled down, not all of those consider this a deal breaker and so will play any way. So that means what? 42 people in the world will not play ESO SOLELY because they can't RP a traveling merchant? I have no doubt many more will claim that's the reason, but welcome to the Intarwebz.
I don't feel I was down playing it at all, I was saying that good factional storylines and well characterized faction leaders will do more than game mechanics ever could. Actually, I can even say that not being allowed to play with horde players hurt my faction loyalty, due to the fact I was "forced" to switch to horde side to play with my friends.
That actually bring up the issue of "my friend wants to be a [race] and I want to be a [race] and we can't play together". While not being able to PvP together, people in a situation such as this could still play together on the characters they want to play.
In my opinion if you are saying that neutral RPers equal faction loyalty etc, then you are either downplaying one or raising the other up unjustifiably.
It's similar to the faction locking etc. It boils down to a matter of scale. There's no problem with NPCs crossing faction lines. An Orc merchant will get harassed by Altmer soldiers etc and it adds to the ambiance. But 342 Orc players running around a Bosmer village isn't realistic.
Well, I don't know about you, but I can roleplay a number of characters with different opinions, ideals, and loyalties then myself. I've roleplayed, neutral and horde characters as well as alliance, but I on a personal level, side with the alliance.
And like you said though, RPers are a small minority, and like I said, this would be cross faction grouping. Its not like a bunch of people from other factions could get into the city, they would have to be in the same group, perhaps even the same guild, to be allowed in the other players instance.
I would wager you don't have more experience RPing than me, my 1st experience was with the red cover, I own the blue cover, have about a million dollars worth of Hero system stuff (counting the stuff from before it was Hero), Arduin, Judges Guild, GURPS, Dawn Patrol. Hell I know a guy with a copy of Chainmail!!
Seriously though, I agree with you that it would be cool. I just think the devs have a clue and that there are valuable reasons for doing it this.
"other players instance"? If we all have our own instances, then it's not really a MMO. Or am I misunderstanding you?
There is a fatal flaw in the faction loyalty argument.
In DAOC the fact that races were segregated to factions didn't matter because DAOC was the first game of its franchise. Therefore there was no pre-made fanbase with favorite races.
In TES however, we have had 5 main games in the series, and I would go so far as to say the majority of people who play ESO will have played at least one of the past TES games.
Therefore a great many of them will have favorite races and some might not agree with the faction that their race has been placed in (based transparently on proximity).
Therefore we are dealing with a draft situation where players are forced to automatically join a faction based on their (likely overriding) racial preference. Psychologically this does quite the opposite of breeding loyalty and in fact ends up breeding resentment, making the desire to join in the PvP fight and get invested in the war much less of a draw. Draftees are never as loyal as volunteers.
Hence why some sort of defection/loyalty quest would work very well in a game like this.
I'd agree if it wasn't for the fact that, well, the war is optional. If an adventurer wants to serve his country in the word, he shows up front and center for Cyrodiil, ready to represent his Alliance to the fullest.
If not, well, then he doesn't go there and just adventures and fights off evil in his homeland. Its as simple as that. You'll even get to travel the world fighting off evil in other places after you purge the evil from your own home. Nice!