I have to agree with you on this one. I've always been a supporter of rewards for good roleplaying. I find, at least for myself, that earning something in conjunction with enjoyment returns the feedback that you are doing something right. Sure, getting special DM events is fun, but it isn't always easy to organize an event with our limited number of DMs, and with not just the DMs to consider, but the other players you're inviting along as well, and everyone's real life issues that can cause them to be unable to come, and thus could further delay an event. Getting something special while the DMs are away makes it worthwhile to be a faction (Beyond just having a group to rp/play with regularly). The hardest part about a faction is that it is very difficult to get anything done without a DM, as anything NPC based requires DM attention. The only interactions a faction can do is between other factions, which usually involves people trying to not antagonize the other faction as they are attempting not to have the law involved.5. Support and reward Roleplayers. Starting with people who simply remain IC as much as possible and just RP their character well, up to those people who are shining gems of involvement and get other people to flock to their groups. (I've already seen several examples of the latter sort on Dasaria, and I think the server has even more potential than what is currently being tapped.) Give them things that matter: attention and support, spiced-up quests, but also prestigious, meaningful rewards. (Not without a lot of danger involved, of course.)
DM support is a great tool to let Roleplayers paint the canvas, and rewarding them is the DM's contribution to the fuel that drives their motivations.
In the end, I think that the best way to entice roleplay in players is to reward them with more then just experience (espcially those that are already level 20). A simple thing like an enchanted sword from their god, or a magic spellbook with some special ritual that only that player or that faction may know would go along way towards encouraging people to RP in my opinion as well.




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