I can agree with you Lord Mndz on the idea of free players having 4-5 countries but not the idea of them reaching war level 3. In my opinion, they shouldn't go up in war levels at all until they starting paying full membership for the game, and also any slave countries free players have, should have no war protection for them at all. Let the free players attack each other and take each others countries so they can get the hang of the war game, and also limit them to a few basic defensive and offensive weapons as well since they are not paying full membership either.
Your idea Lord Mndz of letting free players having a few countries, especially without war protection would work on Fearless Blue which would make sense and a perfect testing ground for such an idea. They would be protected from the big time players since they will be under war level 3 anyway.