Damn, forgot Austria! Definately needed to split the HRE up a bit so that they don't get too powerful, although we've gotta be careful that they are strong enough to face the rebellion of the Protestant cities.

One idea that I was playing with was a Habsburg faction. Although Habsburg dominance did not really come to fruition until a the early 1500s they would make a good alternative faction. They would hold the Netherlands, Burgundy, Austria (and poss parts of the HRE, as its Emperors, although this could be separate). If this was the case, I would be tempted to rename the French the Valois so that this distinct dynastic rivalry could be played out. Of course the Habsburgs would not have control of Iberia at the start of the game, but it would be up to the player to follow the likes of Maximillian I and gain lands through marriage.