I didn't see the factions as good, or evil, unless it was obvious (Fright Knights, I'm looking at you!). To me, they were just warring kingdoms, each with their own agendas. In my headcannon, The Black Knights were the dominating faction, as their castle is called Black Monarch's Castle, untill The Black Monarch died (It was the first Castle subtheme to introduce ghosts, and there's one in BMC. I do believe it is the very spirit of Black Monarch himself). The Kingdom then split, the remnants of Black Knights occupied the old Capitol. The Black Falcons at first were mercenaries and allies to Black Knights, but then they became a force on their own, trying to take the capitol. The war between Falcons and Black knights left the kingdom in turmoil, Bandits and highwaymen run rampant, and formed the Wolfpack. The atrocities of the conflict, and Wolfpack's extertion caused peasants to revolt against the warring factions, they moved to forest and became guerrilla warriors, robbing others. This is how the Forestmen came to be. And crusaders were a band of knights on a mission from neighbouring Lion Kingdom to bring peace and order to the Black Monarch's land. (Sidenote: Black Falcons are old enemies of Lion Kingdom). Ultimately, the war was won by Black Knights, aided by Majisto the Wizard and his Dragons, who took over the faction, and renamed it as Dragon Masters (This is why Black Knights and Dragon Masters have similar looking crest). For their help in driving Black Falcons out, The Crusaders got themselves their own land, which became the New Lion Kingdom. Then, a new, Dark power has risen, and invaded the land. Basil the Batlord, and his Fright Knights!