To me, it's just another example of a badly designed game mechanic working at cross purposes to itself. They roll out a new Faction Rally, ostensibly to keep players playing or bring other ones back with the promise of new loot, then they cap the player's engram intake, essentially erase token farms, and on top of that, dilute the loot pool with all sorts of nonfaction items. Crazy.
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The non faction stuff does not dilute the loot pool, you are misinformed. Every Engram has: 1 faction item, one faction shader, one *possible, additional, just because* blue or purple (or exotic, I suppose; thought the chances would be obscenely low.)
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There should not be any nonfaction items in their loot pool. Ruling stands, first down.