I was looking at some tutorials for making your own factions,and I got a idea.
What would be the consequences of giving the bandits or manhuters castles,towns and lords? Would they act as a real faction,and would they stop spawning around the map after their possessions were gone?
The spawns are done by script, so that wouldn't stop.
As to giving them castles/towns/lords, yes,I think they'd use them like any other faction, though I'm unsure.