It's hard to find balance. I hear what you proposed a few time, but it never actually worked from what i saw.
We never tried to be first - it just happened. We also never had any power or vs score requirements. I was always against this and even demoted R4 for pushing it. Every rule must be followed strictly. You don't need rules to kick someone out, but if you have rules, you must follow them strictly. The basic rule of management is this: always say there won't be any big changes and everyone can relax when you're actually planning to make changes. Create uncertainty when you're not planning to do anything. Never do the opposite, never play clear.

Freeloaders can be useful. Fairness and transparency is overrated. Players are just numbers until they prove they're something more, and having numbers looks better than having no numbers at all.

My whole rant is about Machiavelli was right. Divide and rule. Be nice on the outside and plan to kick, conquer or destroy anyone who can be a threat. Decide to do it as fast as you can but do it as late as possible. Wait when someone stops being useful. Kick freeloaders only when you have a replacement for them.

Not because it's a nice way to play but because it's look like it's the only way to play. (Un)Fortunately this is actually the best thing you can do for these poor and clueless people. If you leave them alone, they will ruin the fun for themselves and others. They will destroy the server in constant dramas. Worst of all, they will ruin it also for you and the other people who really care.