Here's my take on changes to your mentioning Loyalty Points acting as a tier unlock system with what's currently available.
What I think it should operate like is actually a mix of leveling as well as spendable currency.
So let's say every faction has 50 levels. As with every F2P there should be better rewards as you go on and a slightly bigger grind to go with it.
Levels 1-10 are your basic quick levels giving access to mech discounts and special faction themed cockpit items such as:
Note: These are all items you can purchase with the "currency" that is loyalty points. Let's say 5% of loyalty points generated convert to a purchasable currency similarly to XP/GXP ratio. The level is whats needed to unlock access to them.
Level 0 -
(starting from another faction, not applicable to merc corps trading contracts as they start at level 1)
Level 1 -
(choosing the faction from the get go) - Generic FWL emblem for your Battlemech
(tagged somewhere on the Torso/Arms)
Level 2 - 1% battlemech discount for all Marik affiliated mechs on Marik not eligible for take over home worlds
Level 3 - Access to Marik official unit camo design
(Example 4th Free World Legionnaires)
Level 4 - 3% discount for all non Marik affiliated battlemechs on originally non marik worlds
(meaning you take a Steiner mech factory you'd see an additional discount)
Level 5 - 2% battlemech discount for all Marik affiliated mechs on Marik not eligible for take over home worlds
(these stack so 3%)
Level 6 - Access to special Marik themed cockpit design piece (wallpaper, lighting etc.)
Level 7 - Access to Marik specific title displayed in game
Level 8 - Access to Marik official unit camo design
Level 9 - 3% battlemech discount for all Marik affiliated mechs on Marik not eligible for take over home worlds
Level 10 - Access to loyalty point increasing hanging item (Marik medallion)
So basically for every 100 loyalty points you get 5 spendable loyalty "credits" to use as a purchasing item on these bonuses. This seems a much better system in terms of sustaining continued loyalty to one faction rather then quick switching and also rewards those hard core house loyalists much more quickly.