Only having 2 Teams is terrible for balance, as proven in the "Horde/Alliance" that WoW has demonstrated...
Teams have never ever been a good idea, as it continues to be proven in every mmo released thats based on teams... IE WoW, Rift, (insert mmo here)
people always flock to the "bad side" causing massive amount of server merges only months after the games have been released (or in Wow's case Server transfers) to balance out the sides.
FFA is the only way to go.
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