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Why not provide players with a different way to experience your game?
Give Players Options
If there are enough people who want to walk around in someone else's territory, then put them together in that territory. Make a server with no NPCs whatsoever, populated totally by players. You could throw some NPC mini-world-bosses around; bears, wolves, town guards (*), and various other non-faction enemies. Then allow players to flag for Free For All, Faction PvP, or Non-Combat and group with anyone.
The war, the setting, nothing matters ~ we create our own world. Players can walk around in different cities or even in Cyrodiil and explore in/out of combat. (*) Town Guards would be a small group of guards any player, with any faction, can attack. More guards will not come and they will not attack unless attacked. At any time players could switch back to the official game with a persistant character.
The good news is that you really don't have to do too much work. Just take out all the NPCs and put players in! If a lot of people are playing this way, then add more content - like the mini-world-bosses or attackable town guards.
Enough Room For Everyone
I don't want to dilute your game nor do I want to split up the population BUT there is going to be a lot of people playing. Some people just want to pick a race and run around in an Elder Scrolls World ~ and what better way to make it online than to put them together with other players who want the same thing. I respect that some players want to adhere to the war setting but the NPCless world will be more of a playground. No one is FORCED to play one particular way.
I respect that there are many who are excited for this game. DAoC players are custom to the idea of having servers with different rulesets (such as co-op, wpvp, etc). Do something similar and have two options; official and explorer mode, and allow players to switch between them with a persistant character.