I can see that. More my concern was that if we do drop the idea of the neutral alignment, we might consider dropping the alignment chart altogether, or at least replacing "neutral" with "undecided". That gives the characters a chance to discover what's going on at the outset of the game, and create any alignment decisions (or even just marking their choice of alliance) as the story develops and they settle on a faction. It should also be noted that once you've chosen a faction, it is unrealistic to expect a GM mandate that you have to be locked into that alliance for the rest of the story.