It will take more that that to revive factions. Nice thought though!
True Factions is due for a complete overhaul, not just tweaks...It's a good concept but once additional game play elements came into place it lost purpose.
Look at it this way from a Story line point of view.
Counsel of Mages -- Didn't they go BOOM with the blackrock and the invasion of Magincia?
Minax --> Dead
True Britannian's -- Britannian counsel murdered
Shadow Lords -- Their fate is currently being played out...
When and if the Shadow Lords are destroyed or banished...who's left to influence the factions? Who left would represent a firm sense of power in Felucca?
Rikktor
Barracoon
Lord Oaks
Semidar
Neira
Mephitis
Those would be the 6 most powerful beings and cults left in Felucca with the exception of the Harrower, tie factions to Champ Spawns, let defending your allied Champ against opponents give power scrolls if the attackers can be held off long enough to allow the spawn to regress back {x} amount of levels/candles. Let No reward be given for those who attack their own allied spawn even if they Kill the Champ. If your do an opposing Spawn you have a chance to get a Stat Scroll in addition to your Power Scrolls or an increased chance at 115 and 120 scrolls. Non-Factioned players doing a Spawn get none of these additional benefits, yet remain attackable and rack up "defense" credit towards reward by Factioned Members of the proper spawn while decreasing "attack" points at an opposing spawn.
What this would do is break up the Zerg Guilds into Factions giving them multiple ways to get Scrolls while at the same time. Players not in the Faction might be more likely to be ignored or assisted at spawns, by the Zerg Guilds if it's an opposed Spawn from the one they are allied with.
This could add a Draw to Factions, and at the same time a draw to Fel in general as more players would be willing to go to spawns if the risk of being overwhelmed at a raid was less.
Less common Spawns would be less desirable by Zerg Guilds leading to Reduced chance at a raid also.