What does faction affiliation mean for you, then? Is it a question of standings, or militia, or something else?
It means these characters don't have green borders so they don't speak with the canon voice of CCP although they put forward identities that simulate (effectively, imo) such associations.
They present a dilemma with two choices for the player. One is to play along. The other is to not. Jules' player chooses to not, but to do so in a way that knocks very heavily on the fourth wall for everyone watching and voluntarily participating on the terms set by these characters. I believe he justifies his stance, which fulfills a need to voice his objection to the concept as a player, by employing reactions that are thinly veiled by an IC veneer.
Not only does it break immersion, it strains in-character suspension of disbelief.
In fact, I would argue that the 'wardec' line of thought is intended to break immersion for those who are participating, rather than these characters themselves being the immersion-breaking element. It is less an in-character response and more of an in-game response, that is an action that has storyline merit but which is so heavily anchored in a gameplay mechanic that it's impossible for me to believe in this context. But then, I have accepted the terms of play these characters offer. For Jules, who doesn't, the wardec is perfectly valid.
Nevertheless, the politicians have reacted to him on his terms and in good humor, it seems.
Soter sees them as fraudulent wannabees that are threatening the stability of Federation politics and the hope for collaboration of disparate factions in Federation space.
Jules (I mean you as the player),
you see them this way too, and that's perfectly within your rights. I don't fault your opinion. But virtually everyone else has run with it. By continuing the illegitimacy argument, your character appears to be somewhat nuts imo. Cas did point out the conspiracy theorist storyline, however... ^_^