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I would gladly play a game with 3-5 factions, as long as they are well-designed. Ultimately, the main task is to create a solid base for the game, and the number of factions is a secondary factor.
By the way, the "pompousness" isn't present everywhere. For example, I was very impressed by these artworks:
http://photos-c.ak.fbcdn.net/hphotos-ak-ash2/hs336.ash2/61655_438073314587_161184829587_4894638_3306326_a.jpg
http://photos-e.ak.fbcdn.net/hphotos-ak-snc4/hs631.snc4/59115_438073344587_161184829587_4894639_1347879_a.jpg
Although most of the Gryphonhearts (that is, Gryphons, please forgive me) look like underage teenagers. Each one has some kind of silly thing...