Well thought-out post, Devi. I would think that if we did WoE:SE having only one castle per time would definitely be needed. As for FE, I haven't seen any servers that only have one FE castle open per WoE but I also have only played a handful of servers outside of heRO so I don't know about that aspect.
A better randomizer for BG would be nice (or let us pick teams as in official BG, but some people claim this could be abused). Either way, I agree that BG needs to be a major focus (and soon) if we want to improve the competitive side of this server. BG has been out for a long time now, and we still have our custom version which (while better than nothing) leaves a lot to be desired.