O_O Interesting... Imagine that, different sets of players, starting in a different galaxy set!
The last MMO I played operated in a very similar manner... but you could eventually proceed to the other places! But while that's true... considering that we only get 1 account per server, imagine choosing a faction and regretting it later for some irritating reason! (lets assume that it's gameplay related)
Oh noes! That would kinda reek eh?
Might be why it didn't carry over to the released Pirate Galaxy after that point... maybe?