Yes, this was essentially what I was thinking of as well. Wouldn't be hard to one off a few people to get things set up and started and ensure every faction has at least a few serious and experienced players in it.
And actually, it may be BETTER to have a smaller faction. Because numbers don't always mean better! It means there's more to organize and protect. And more likely, more inactives within that faction for the other factions to try to take advantage of. Would you rather have a smaller, quality team that is close knit and organized or massive numbers that you could throw around and hope to be able to coordinate overwhelming attacks with? There's no doubt the smaller teams will be able to set up quicker coordinated attacks, while the larger one's would have to sacrifice time to get higher numbers to join the attacks. And if only 1 faction gains a lot of players, there's no doubt the other factions would likely gang up to try to keep the massive one at bay. A LOT of factors come into play, so I'm not as worried about factions becoming a bit uneven. Only if all the experienced players decide to only gang up into 1 massive superpower (which would totally not be fun).
I've thought about this too. It'd be difficult to figure out how to do the reward for this as there would simply be an overwhelming number of players in a single faction. But at the same time, a small reward for all in the winning faction may just be exactly what helps keep some newer players. It may be underwhelming to the experienced pro's, but a good majority of experienced players already boost reds and don't count on blue rewards to begin with. But that would fully be up to the admin's on how they'd like to do this.
My hope is that no 1 faction will rule the world on this though. Hopefully, the factions would play it smart and constantly change their diplomacy in order to keep each other at bay. Obviously, if 1 faction has 8 relics, you would hope the other 3 would realize they should team up together against them. So with that being the case, I think it would be safe to reward a bit higher to individual rankings (maybe to 25?) as it would hopefully be spread across all factions. But this will all have to be talked out more thoroughly if factions is the event chosen. I am working to get answers and I will have a full detail post on everything do-able for a factions event should it win.