I'm saying it again, the concept of "balance" is broader than you think. For example, you can lower some alt-upgrades to an unacceptably low level, and no one will choose them, but the "balance" in your sense won't suffer, because the faction as a whole will maintain its overall performance statistics due to other upgrades. Balance is also about equal choice, which you won't have (converting dwellings will happen almost automatically).
I've already given an example where one player gets non-native dwellings, while another gets native ones on free land belonging to their opponent (for example, out of 4 possible dwellings, only 2 are available, so there's almost a freebie). Where's the balance in that? At least that...
As for upgrades, this won't really affect things, as the second branch will serve as a reserve, which won't be used much, except perhaps for the Elves with their nimble units...
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