I am in/help run a small guild that has more PvE players than PvP, we JUST got our Faction delcared (Luxon) last night. (AB is so fun hehe). Anyway I don't see the point in not having small guilds. What's wrong with people who LIKE small guilds and want to have fun with a close-knit group of friends rather than a big pvp guild, there is nothing wrong with either type and I have been in both (though on different games).
You say they are wasting away their potential? For what? Your guild to become stronger and for them to not benefit because they may not even like PvPing.
I also agree that it is absurd to charge members Faction to stay/join with nothing in return.
D

. All big guilds have to start from a small guild.