So, if I understand what's being proposed:
The players can pick one of two Minor factions:
- "Easy" minor faction: Normal AI, score penalty, but most of the restrictions/penalties for using golems/spirecraft are removed.
- "Hard" minor faction: Beefed-up AI, no score penalty, "some" of the golem/spirecraft restrictions/penalties are removed.
So the next effect being that most of the previous restrictions/penalties will go away, with the choice then of a score penalty or a beefed up AI? This sounds great to me; both factions are appealing. Two thumbs up.
As for a "Medium" or "oldschool" option, which would presumably bring the old restrictions back, with the normal AI and no score penalty: Meh. I can't see myself ever using that one. It seems to me that this option would result in the same balance debates you have now in addition to new balance debates over the Hard faction.