Because it would be badass as hell.
It could be a week long event, just like Iron Banner. Representatives from each faction (Dead Orbit, New Monarchy and Future War Cult) would take up shop in the event area.
But these representatives would have more powerful faction items, and preferably unique armor sets to each faction (not just different colored like now)
For a week you would battle in the Crucible under the faction you choose too. Leveling and XP would be similar to Iron Banner (with Bounties and medallions from lost matches) and would unlock stronger faction gear.
I think it would be more badass if you had to lock into a faction for a week, and there was an overall point score, and the winning faction at the end of the week could receive a special faction oriented shader or ship.
Let me hear your thoughts guardians! This would be awesome!
Reply bump so Bungie and Deej sees this!
Edit 1: I've seen some ideas for the faction wars to carry over to PvE also!
Edit 2: I forgot to mention this as other guardians have brought it up. Your crucible team would consist entirely of your faction, against a team represented by one of the other factions.
Edit 3: Over 50 replies!
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Stopped reading after first sentence. That was a good enough reason. :)