It might be a good Idea to have an event of some sort or even a quest that would allow a character at a certain level to change faction once. I started in Ebonheart Pact and joined a local guild from my country and realized all of them were in Daggerfall covenant. Of course I`m also part of other EP guilds but I think it would be great to have that option. A good place to implement that choice would be after we defeat Molag Bal. We set all 3 factions in temporary peace to set an attack on Coldharbour and have make contacts and friends amongst those factions (Story wise I`m talking about NPCs here even tough it is only the mage`s guild and fighters guild we still got in touch with the leaders of each.)
I`m saying this because im a bit egoist and would like to change my character to join Daggerfall to play with my friends and not have to restart a character all over again just for that.