The faction spells just improve your faction temporarily. The biggest use you will find for these are to get better prices from merchants, the ability to do some quests without having to do faction, and being non-kos in a couple of zones.
The best examples of this are:
Sirens Grotto: Cast it on one of the non-animal mobs (the animals are on a different faction) and you can safely swim across the zone (until you ruin your faction past the ability of the spell)
Velketor's Labyrinth: If you give yourself werewolf illusion and cast collaboration you will be non-kos in the zone. This will allow you to explore safely as well as recover corpses that even rogues can't drag due to the see-invis mobs.
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