If you look at the specific wording that everyone has been using, Factions hire players. You're not joining a faction to the exclusion of the others, you're a mercenary that is being hired for a specific mission.
Which makes perfect sense: It would be silly for Bungie to split up the community into fifths. "Hey, want to play some PvP later? Oh shit, Johnny chose New Monarchy when we all chose Dead Orbit, guess he can't play with us until he makes a new character, but then he won't have all of his stuff... what a shame..."
No. If you want to roll with a single faction, that's your choice, but it makes perfect sense for Bungie to allow us to come and go as we please. Think of the Guilds from Elder Scrolls: I can get fighter rewards for working for the Fighter's Guild, and I can get wizard rewards for working for the Mage's guild, but if I want to on a WHIM I can drop everything and work for the Dark Brotherhood for their Assassin rewards. Each track is seperate and independently advanced.
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Ya i think the "come and go" totally seems more likely. It seems to me like the factions are related to the team colors in Halo. Of course by making multiplayer team choice deeper than just colors means the rewards are deeper also. Since we all will have unique characters i wonder how we will differentiate one team from another.
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You're absolutely right. Permanent factions really would go against the whole "ultimate playability" Bungie is going for with Destiny. If it works like guilds from the Elder Scrolls series, that would be fine, and it would even seem like it has the same type of questing, as we've seen "Chapter 1: Gain Favor of the Queen" for a possible New Monarchy storyline in an older ViDoc. In Elder Scrolls Online, you choose a faction, and you are locked in. Permanently. On top of that, you are not allowed to go anywhere but the provinces belonging to your faction and the main PVP area in Cyrodiil. Not. Ideal. I don't think Bungie is going this route with Destiny's City, but after seeing enough of ESO...it's enough for me to not want it in a game like Destiny. Thanks for your input, it's greatly appreciated.