I'm going to try to be brief in what I'm describing but I wish their was division among factions rather than just lore, items, and aesthetic.
There could be missions where players specifically work for or against a factions ambition. Patrol missions that align with a faction should gain rep for that factions. Factions should scheme against/try get the upper hand on each other and players should have a hand in it.
Maybe introduce faction specific teams for new rewards in crucible.
Contests to see who can score the most kills between all the factions on a certain strike. Whoever wins all the guardians aligned with them (based on most rep between factions) are rewarded or they get the best reward and everyone is rewarded somehow.
If the sparrow racing was implemented we could have faction racing.
TLDR
I just don't think the factions have a big enough pull in the destiny universe. We need more purpose and story behind them hopefully a story the players can shape.
There should be faction specific events.
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With you there give us a story bungie cause the faction just say what they stand for. Give us proof and meaning