Man, all I'm hearing is "waaaah, we want to hide behind killing our own faction without actually being pirates".
If you shot and killed someone IRL, you'd be punished, likely for the rest of your life.
Honestly, anti-faction activities should have been at minimum this harsh from the get go. The jail system is a joke, because it doesn't discourage you from being a dick piston to your own faction. Most people get off with killing their own faction, and when they do get jailed it's for a measly 20 minutes. Yea, *real* big punishment there.
You wanna rob and steal from your own faction? Deal with the consequences. There are plenty of reds, pirates, and player nation to rob. You know, the way the game was DESIGNED to be played in the first place? Faction vs faction? Remember that?