The main problem I can see with this is that without predetermined match-ups, I can see pretty much nobody picking any faction but Nords, Vaegirs, and occasionally Rhodocks. Mostly because those two (three?) factions are the most popular and can quickly adapt to any spawn, whereas Swadia has trouble against all three of them, Sarranids seems to counterpick Swadia and have a good chance against Vaegirs but lose horribly to Nords, and Khergits are up for banning (taking a leaf out of the NC's book!).