To toss my hat into the ring here, I don't think having an absolute ban on the using "Official" (okay well maybe official, but I'm just spitballing here), "real' and "true" might not be the best course of action. As others have pointed out, it becomes difficult to tell some factions apart as a result, but I also understand the need for having some way of (sorry Tef, I can't think of another way to word this, but I certainly am not saying this with a negative connotation) policing the faction names, only to the effect of not having people at each others throats. For example, let's say there was a faction that was based around some sort of false splinter philosophy but, purposefully branded themselves to be the 'true' religion. So we call it the True Disciples of Whozawhatsit, both to differentiate from another faction called Disciples of Whozawhatsit who follow a more passive, less extreme doctrine, the former believe they are more enlightened than the latter. Simultaneously, it also adds a little bit of...story? Flavor? Its 2 in the morning for me, my brains only half awake. If there is an IC reason for the faction to be called what it is, I don't think it should necessarily be axed, just because there's some OOC drama, or newbies are a bit confused (sorry to the new peeps). Its not our jobs to make everything clear cut to every single member, and honestly I think putting in a little effort to find out exactly what each faction is isn't too much to ask.
Long winded as this was, my point is this. I don't agree with the tweak to the rules, but I don't disagree with it either. I just think that there may be a better way of dealing with this situation, perhaps a case by case? Although I imagine it would add quite a bit more work on the staff. End of the day, whether it is kept or discarded, its no skin off my back and we'll either work around it or the tweak will be tweaked