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I would choose to make my own empire known as the unified empires of man we are a separated human faction and loyal to earth and enemy of the commonwealth of man and a galactic superpower
I'm playing in a story similar to the one you're describing here. It actually started with a variation of the game's government of Earth: I had turned it into a pacifist empire, rooted in the relic world. But the CoM was there. Since I have a high sympathy for humanity, I tried to come to terms with them and agreed. After a while, 4 different xenos countries declared war on CoM, which is still npc. I thought CoM would handle it but they even lost Deneb. Their wars are over. I couldn't stand to stay Pacifist any longer and changed my ethics: I opened the Console Command and started the revenge campaign by taking the CoM...
From the moment I wrote this message, I fought heroically against the 3 grand coalitions. Sometimes we won victories, sometimes we lost. Unfortunately, Deneb is fall. It was a big disaster. But CoM gave me 19 hours of non-stop strategy pleasure. I will never forget you, Sidney lady. Now it's time to sleep in real life. :D