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More is better! :) In my opinion, it would be better to create about 10 main factions and give players the opportunity to create their own, just like in Galactic Civilizations 2. Then everyone would be happy: some would choose from the available ones, and others would create their own race with a unique culture and traditions. There's no need for "good" and "evil" – it's been done to death. It's better to just have different peoples who wage war and make peace for various reasons. During the colonization of America in the 17th century, the only ones who could be called "good" were the Aztecs and the Maya.