I understand your worries, but i do not share them.
First, these leaders would not have ludicrous powers. They would negotiate contracts with merc units and treaties/alliances with other factions, resolve disputes, and direct the overall strategy. Much of this, especially the coordination efforts (but negotations with mercs too, see Prussian's work to hire merc units for CSJ) have already been going on, they would just be more "official", for the overall stability of the intra and inter-faction relations as well as CW as a whole.
Favoritism and greed, you fear? Well, get a majority vote from the big unit leaders and Khan/SaKhan/Loremaster/First Prince go back home
Respect must be earned anyway to have the support of most units.
OTH, that should not be easy, or it could be used merely as a political tool.
There is at least another game, Air Rivals, that has something like this. Players vote a president, vice president and "executive officer" or something like that (again, 3 is the perfect number, checks and balances but also different roles and powers). They usually hosted discussions with the unit leaders in a dedicated conference hall in each faction's city and with their imput designed tactics to use and the best times to start the big faction battles (that is one of the presidents' powers) or when to activate faction-wide bonuses earned in these battles. From what i recall, they also acted often as commanders in the field during daily smaller faction battles. They were in charge for a month and they often changed, and every player above a certain level could vote.
However, for MWO i would rather let only the leaders of units with more than X (25? 50?) members to vote, not because i want to exclude the others, but because since this is not a MMORPG, unit leaders are those more likely to know better the candidates having probably dealt with them for unit coordination etc.
I am sure it could be possible
Edited by CyclonerM, 07 April 2015 - 03:59 AM.