How to make an MMO

Ok, having chatted with Nick, Ralf and others in Chatbox today, I thought I'd start creating what I imagine to be the perfect set up for an MMO that would include PVE, PVP, faction change possible but yet not too complicated.
So, here goes (using WoW as a basis for the game):

Factions:
3 factions - Alliance, Horde, Steamwheedle Cartel (which would include all the Goblin places in Outland and Northrend too)

You have other factions (like Argent Dawn/Crusade, Cenarion Circle/Expedition etc) that you can befriend or be enemies with, but you are never able to be a part of, just as it currently is in WoW.
With the main 3 factions, you are able to change between the factions, however you are only able to do that if you are at least friendly with SWC. The process of changing allegiance would work along similar lines to the Aldor-Scryer rep stuff. Friendly status means you can enter the faction's cities. When you are a member of either the Alliance or Horde you are able to be at war with the neutral faction.

Cities and settlements:
Each race has a city and each city will be within a zone that is permanently "owned" by that faction. It gives the possibility for people to turn PVP off (helps with levelling) and cannot be conquered. It is heavily defended (max lvl elites and probably about 10% more than there currently are) and has a racial boss to kill. When this boss is dead, it will not respawn for 30 minutes, giving a buff to the opposing faction and the chance to enter an endgame PVE dungeon within the city (something like a door opening up behind the boss). This dungeon is accessible for players of the "home" faction by speaking to their boss. This goes for the Neutral faction too. With SWC, they only have 1 city (Booty Bay), so only have 1 dungeon accessible. In order for the dungeon to be accessible, you must be at least revered with the race in question.

Each "non-home" zone will have a key settlement in it. It is conquerable (think Halaa), that is to say that it can be owned by any of the factions. When a settlement is conquered by your faction, you are then able to access and endgame dungeon. Your faction also controls the zone and a particular bonus from that zone will buff your entire faction (along the lines of the old turn-based and real-time strategy game campaigns). You will also get access to new quests and an FP.

In addition to the main settlement, there will also be an outpost (think Refuge Point or Kargath) for all factions with an FP. These outposts are not able to be conquered, though it is possible to attack them and kill the NPC's there. At the outposts, there will be quests that help with regaining the main settlement (by way of buffs and quests to weaken defences and so on).

PVE:
All zones will have at least 1 of their own dungeons independent of the main settlement. Also, dungeon hubs like Blackrock Mountain would be created so as to encourage potential PVP scenarios. Also, summoning stones would not exist, so as to encourage groups to meet up and travel together to the dungeons.
Dungeons for lower levels will give gear as drops. Raid dungeons will give emblems for gear and moderate gear as drops (think blues for drops and purples for emblems)
The endgame dungeons in the settlements will have potential rare epics from the end bosses.
In the city raid dungeons, there will be the potential for legendary drops from opposing faction cities (i.e. cannot be picked up by owning faction).

PVP:
All players you kill who are in the HK range (no less than 3 levels below) can be looted for marks for gear (blues). When you kill players in an opposing faction's city then you also gain emblems for gear (purples).
As your control of zones increases, so do your buffs. Al this is so as to build you up to be able to take on an enemy city.
Battlegrounds would be along a similar vein as the current ones, but would be kept to only 1 per continent. These would give temporary buffs to the faction that wins it, lasting 1 hour for those who were in the BG and 30 minutes for the faction. They only exist within the continent and you lose your 1 hour buff if you leave the continent.
Arenas would also happen, but these have no impact on the overall PVP situation. They are purely for titles and e-peen! Also, you would each have a standard armour set that your char would get (probably getting a choice of 3 that you make before each match, so that you can maximise your spec within a particular). This way all the balancing gets done on the gear, not the class.

I am sure there are other things that I could add and things that I've not thought of, but I would be interested to know what people think about it as an idea.