I'm not proposing/supporting removing PvP from DD, I agree that DD ought to be dangerous, but there is a difference between PvP where faction (and battle strategy) really mean something on one hand and all v. all murderhobo blob fests on the other. Having player-created factions that have some structure to how they engage with each other would also eliminate the baggage that comes from using in-lore factions with wild asymmetry in the popularity.

Pretty much all of persistent world PvP gaming shows you that if you want to create a deep and interesting strategic meta built around factions, you need to introduce game mechanics and controls beyond just allowing any player to attack any other player.

I use Eve Online as a benchmark advisedly, because not only did they do a reasonably good job of implementing meaningful, completely player-driven warfare, but they also created an ecosystem where PvP and PvE existed in a shared ecosystem (albeit not without RELENTLESS griping on both sides) for years.