I really like this idea. I do have a couple niggles though.
In regards to the "exclusive content", I assume this means clothing/mounts etc?
Also will there be an option to be Neutral or switch factions? Or is it a case of you have to pick, and once you've picked that is it?
The idea of raids sounds fun in addition to PvP, as it gives those who do not want to PvP a new lease of life after completing story - plus it would be nice to make use of areas such as the blocked off caves near Bill's House, south of Trainer Valley and the one in Dragon's Den.
Will these raids be done solo or as a team? Or would you have the option?
There is also the idea of rewards and the rank system, I'm assuming the rank system will be like an exp bar with rewards you can purchase from an NPC once you have reached certain levels - but in a raid, will there be some kind of boss reward? If solo, this is fine, but I question how it will be managed if raids are to be done in groups of people. Personally I'd rather a boss fight rewarded a higher amount of "rank exp" for lack of a better term, than to have rewards, to stop the "oh this is unfair" kind of response when they don't receive something good, whereas someone else does. And in this way you can to an extent, choose your own rewards - this also provides a good money sink too, if you make it so that you have to have a certain rank +payment for each reward. Or they could be done alongside eachother. *shrugs* who knows at this point.
:Shy: