Make the ally cap to like 3-5, its just annoying being allied with 1 faction, I get you need to make a choice but its hard only choosing 1 ally, the cap should be increased I think, 3-5 is roughly a good amount for a faction.
+1 You can't simply limit the alliance cap to whatever you see fit, as it's the community who's playing and not you. Making a choice between which factions to ally is hard, and may even make the factions who weren't chosen for the alliance your enemies.
The way I see it, setting a cap on ally count, although may help with the dead server, is simply a futile attempt at increasing the player count once again. The benefits it bring outweigh the restrictions that come with it.
I think a ally count is annoying but there isn't enough players to just have unlimited allies, raiding would be dead, nothing would happen and people would quit, I just think it should be increased really