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My apologies, Tarl Cabot, but I have to shoot your proposal down as well. This idea of yours would place too much unwarranted harm against all those small Merc Units and Solo PUGs, and ultimately cause them all to want to leave MWO if they're not hyper-nostalgic lunatics.
I expected it to be shot down but do remember PGI has set this up for failure. The proposal though is really only partial solution, a segment, a stopgap in a similar manner as the tonnage difference. It is not meant to be the only solution. To make merc unit, be it one-person unit or 100-person unit decide whether or not to stay merc or go loyalist, and that is where your proposal is another segment.
Of course it is base that could be built off of. The initial CW contracts were much longer in length but just about everyone and their dog shat their pants about it, which then PGI reduced the minimum contact from a month to a week. The Clan contract length could be changed to two weeks vs IS one week, etc. The one thing though, it does not appear that PGI will get actively involved, except via coding, in an attempt to "encourage" merc units to balance out. Very few really want competition in the actual game. What they want though is to win, even if it is an "easy-seal club/just how devastating can it be" win. Sounds familiar, single player action, GOD codes, read other players strategies on how to defeat an AI opponent?
But as some should notice, a number of the posts is about me/me/em and not the overall effect mercs themselves, the moving population is having on this game mode. It is about the closest PGI has gotten to initial CW expectations but it is still a very long way off from being done.
Again, for this proposal, which is only a segment of suggested changes, I would actually change the contract lengths of the current setup to Clan contract of 2-weeks before having to take a minimum IS contract of 1-week. At least this segment will keep merc rotating instead of staying in one place while gorging themselves on the seals that are disappearing. At the same time many of those merc units are not dropping as 12-man, allowing those that do drop with them to see how they operate, tactics, etc. It won't help everyone but there is a huge difference in dropping in QP with mixed mechs vs dropping in an environment where is it Clan VS IS tech.