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There are no problems with choosing factions; I personally even like this system, as it allows you to strategically distribute factions among players!
However, choosing a template for the game might cause some issues, and this is obvious, although it can be resolved. But if you create a draft from the complete list, there won't be any issues at all, and that would be great!
Most players probably don't care, so I assume the proposed option will remain, and when problems arise, they will start writing here again and change the rules during the tournament, just like always!