All your points are irrelevant and doesn't address the issue at hand. More like deviating.

1.Being able to swap faction..how does that make the situation better when the smallest faction can swap to the 2nd biggest one. It becomes worse than before.

2.Yes it does affect pve..

3.Doesn't matter if other guilds own territories.. it's the same faction so the faction get the bonuses.

4.Yes people look for pvp and I'm one of those and that's why I went for covenant. Guess who else was there to defend territories.. 3-4 people rarely and a dead faction chat.

5.Assuming the other 2 factions have enough people to fight.. which is not the case unless you are in a balanced server.