Switch allegiance I can see an argument for, but ban? Really? You think its sole purpose is "political"?
So you've never heard of anyone being banned for disobeying orders, or for attempting rebellion, or any other form of resistance against the authority of the realm leaders?
I'm not saying that we should get rid any realm authority, but realistically where are characters going to go when banned if we OOC-frown upon switching allegiance? Just allow executions and be done with it. Make it that when you create a character on the War Islands you pick a realm and you either help that realm win or you stop playing that character, full stop.