Man I like this idea a lot. All the cities would become corrupt, and pockets of resistance would spring up. I'd rebrand Fortress and Outlander into 'The Resistance' vs. The Empire.
Scion and Scarab should probably join as one unit of evil mages and cultists working towards the end of days, whether from the Shadow Plane or Hell.
Ragers and Nexus can stay where they are, fighting over the Veil and each other as well as the rest of the MUD depending on swing of things and where magic is in the land.
This won't ever happen, but it's a cool concept. Maybe this could be something done over the weekend as a world scenario that forces these alliances to form up.