Okay- I can agree entirely with Strider, as much as a map reset sounds like fun. Its not a real fix, the fact of the matter is that within several months or half a year it will end up the same way it is now, certain factions will reign supreme and RP will be restricted within their pseudo-political spheres. It doesn't sound worth it to throw away hundreds of days of work only for a temporary solution, because with the board's forumla the same will happen again. It seems more of a punishment to the long-running factions than a boon to younger ones as the the positions will merely reverse again.
My suggestions are as follows:
1.) Edit the scale of the map, make it larger, add more worlds, and include larger sub sectors and sectors themselves and create planets to fill in gaps left by canon. Surely new worlds would be viable for population since the timeline of Chaos and the Old Rep.
2.) Revamp invasions, an invasion should be more than a back and forth duel between players, it should be a long-term, grueling campaign over supply lines, cities, and even entire continents of a world. If Medieval sieges lasted a year than Intergalatic sieges could go on for years, look at the Battle of Salucami in the Clone Wars for example. Have so that entire sectors come under threat and make it so its more than one battle or a thread that decides invasions, RP and direct entire campaigns between opposing forces. Yes, it would take longer and more work but the experiences would be grander and the rewards more fulfilling then three days of back and forth posting.
3.) Follow HK's original idea of a new Galactic Frontier.
This one is going to be really unpopular,
4.) If a reset is entirely needed that characters and tech should be filtered too, as particular characters and their cadres would use their old standing to form pocket Empires in days and would force new factions and players out again. No offence, Vets, but its inevitable. The old Powerful characters would just be able to field marshal over everything on their own if all semblance of galactic society collapses both ICly and OOCly.