As I have mentioned, we can do large numbers, but choose not to perpetuate the problem.
“The problem with large battles dropping the frame rate should not be blamed on large factions, but on the fact that the game is still in alpha and requires a large amount of optimisation. The players taking the game to its limits is a good thing because it flags up the problems to the developers.”
You yourself recognize that the game struggles with these encounters. I’m certain the Devs have realized this too, but have frustratingly chose to focus instead on textures and PvE content. The problem has been flagged now for several updates. Repeating the same action and expecting different results is the definition of insanity. The desired change will not be brought about by continuing this, but by adapting to what the Devs have given us, with apparently little hope for change (optimization). I don’t “blame” the massive factions, I “blame” the Devs and am simply looking for a workaround. If we could have massive battles, then I would be all for that. As you have pointed out though, it isn’t feasible at the moment.