I'm pretty sure I posted previously why wipe is needed.
But, as I can't find my post, I have to say it again.
The game isn't done, it's an open beta. Beta means it still is in test phase and is rather far from finished product, while open means... well, it's open to everyone. As the game gets updated from time to time we need to test these features and give feedback to the developers, as all of us (FOnline: 2238 players) are actually beta testers. Once a game-breaking update is finished by the developers, and they are ready to update the server with this new update, they have to wipe the server. Why? Let's say, the way to get a base is changed - you have to do a quest involving dialouges, and maybe killing someone too. If the server isn't wiped, well, nobody would really test that feature as everyone already has a faction base. Simple as that. If the server gets wiped and everyone would want their faction bases back, they will be forced to test the new feature out. If it is bugged, the player will most likely see the forums and search (Yeah, right, nobody these days use SEARCH button) if someone has already reported it. If nobody has posted about it (or the search engine is a moron like most times) the player who experienced the problems will report it as he wants his base back. Wipe is necessary, however, making a wipe without an update or "jst for the lulz" is somehow lame.