Granted Factions had history and shouldn't have been abandoned, it was broken. I argued to death that it should have just been reformatted to make it current.
VvV is pretty dumb in many aspects, but they got a few things right. The flagging system being one of them. It got rid of the non-factioners being able to attack without consequence. It also made the upkeep of your items much more manageable, especially for your cross-shard players. The horses are pretty cool, granted I would like more color options etc. It also gave a fairly decent foundation to build upon.
Seeing as how it has been put out now for 2 years and not a single update has been made does give me concern tho....