Trion said that it's already deep into the planning stages of heating up the conflict between the game's two sides, which is planned for next spring. The current Fae Yule festival is meant to be a quiet moment before everything explodes; a peace that is soon to be shattered.
Design Director Hal Hanlin puts a date on the upcoming Factionopalypse: "We're planning to drive a wedge between the factions for the game's one-year anniversary." This puts the date of the event in early March 2012.
Currently, while the two factions don't necessarily get along, they both are working toward the same goal of repelling the invading planar forces. It's just that they use different approaches and philosophies as they truck along.