I think it'd actually make the game really involving for the the first wave of players, since you'd really be making a great deal of difference with your actions.
However, as you've stated, most players will simply create alts for this purpose; perhaps if there was gradual diminishing returns on profession effectiveness vs. profession level, instead of a hard-cap, that could be discouraged.
Regarding factional warfare, the issue with that is the snowball effect; once a faction secures a high quality resource for any amount of time, it'll will become more and more difficult for anyone to kick them out, due to their superior equipment. This may even reach a stage where the other two/ten/fifty factions working together are unable to defeat that one faction, unless of course there was some sort of betrayal, or lack of scaling against player numbers.

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