Well, you have to separate the factions into 6 "cultures" because that's the limit the engine can use for traits (the 7th culture slot cannot be included). So regardless of how many factions you have, they must fit into this 6 molds (or less) in order for those traits to work.
You have the option of slotting only famous factions into 5 cultures and other non-famous or minor factions into the 6th.
Of course, you also have the option of ignoring it completely (i.e. non-activate them).
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