One thing to keep in mind is that not all of the developers intentions for government are currently being expressed through the NPCs. Social experiment is good (and hopefully fun!) but it is also difficult if you end up in conflict with a structure that has essentially limitless resources (i.e. a government/legal system that the NPCs and presumably all the invisible inhabitants of Yliakum respect) I would expect that a functional government would end up working with (and maybe for or through) powerful guilds, but at this point an emergent government would not be empowered to "govern" concerns outside the area of setting social norms within Planeshift.
Despite that, I encourage people to try things that are challenging and novel, since within the area of "social convention" there is a lot of room to create a great atmosphere or establish conventions that propagate because they enhance people's experience of the world. Joshua6021, you might find that it is challenging to build a critical mass of people who are willing to consciously participate, but if you can build up a quasi-stable-multi-faction-inter-guild dynamic (my poor hyphen key!) that is built around the concepts of the game world, then you're awesome
A quick disclaimer, I'm speaking only for myself and not in any official capacity for anyone else on the developer or GM teams.