Well, I imagine it might be that they're looking for something somewhat more familiar, recognizable, and relatively familiar to your average player.
It's not working. Most people come to EVE looking for sci-fi (or scamming, heists, ganks etc.)
Personally, as someone who advocated that CCP actually consider using some real-life examples of the problems with democracy to rub a little realistic grit and grime into the faction, I'm wholly in favor of what they are doing. It's also nice to see the "wholly holy and good" (IMO, of course) get three-dimensionalized.
Nobody gets to have a perfect world. Not even the Gallente.
I don't understand where do you get this idea. If you took a look at the lore, you would notice there is already quite a bit of grey shades. Nevertheless, I'm right there with you that more grit and grime wouldn't hurt at all, but it should remain in the realm of speculative fiction, just like for the other factions.
If someone asks you what do you do in EVE, everyone should be able tell about it without embarrassment. For the other factions, you can cook up an answer based on the noble houses, theocracy, freedom fighting, tribalism, megacorps, meritocracy etc. It works.
For the Gallente, can you really say you're advocating democracy, progressive policies, social democracy, or anti-immigrant punditry without sounding dubious and creating confusion? Does it sound fun? Sure, if you read all the relevant news items and chronicles, the story you can parse together makes it clear that all of these are subtly different from their real world equivalents but it doesn't really help with this issue.
There are sci-fi titles like Deux Ex, Blade Runner, Akira, GITS, Cowboy Bebop etc which are roughly as close to real life as the Federation is and have social commentary and all that stuff, but that's not the first thing that comes to mind, as it shouldn't be.