It does add some flavor to things. You don't have to go overboard with it, and create the parallel power structures, and full-fledged religion, in order to get a flavor and feeling to things. It just makes everything seem more worthwhile.
The previous incarnations of the war islands had their own religions and flavors. There's no reason why the current and future ones can't have that, too.
Now we just need to get a bit more of that team feeling back, and get rid of the side switching and associated crap that's been going on.