I apologize...but this thread has gotten sort of funny.
Look -- take the emotion out of the issues and look at this pragmatically and you will discover that there is no "Romulan Faction." Not really.
What you have is a new race, and that race must make a choice at level 10 to join one of the existing factions. Period.
No third faction. No Romulan starbases.
This is the model for probable future "factions", incidentally.
The bad thing about this is that by doing it this way, Cryptic has put the entire Romulan society into a perpetual state of civil war...Romulans firing on and destroying other Romulans in PvP....Romulans working either for or against the Federation or the KDF directly...
It is not the end of either the Federation OR the KDF...but it is the end, for all intents and purposes, of the "Romulan Faction".