This is a very bold move to make, and I'll give you that for sure. However, I don't think they can go anywhere.
Let's just look at the facts, the problems when it comes to Sith failing to roleplay stems from the fact that they're utilized improperly. When I first heard about the Sith coming to Synergy I was a bit concerned myself, but it was easy to see where it had came from. A while back, there was a call to make our CWRP more like MRP where the Clones could go up against CIS forces. For what ever reason, this inkling of an idea was scrapped -- probably either due to the poor management of MRP as well as trying to make it more friendly to the Directors as setting up CIS Forces would likely be far more of a challenge than need be. It would basically be creating a plethora of different new battalions for no real reason when a lot of Clone Battalions were hurting at the time.
In way, I can still see a concept like this working by downsizing the entire CIS into a few jobs, but it would likely just cheapen the scale of the Clone Wars as a whole. The Sith seemed to be added so they can take up the reins as an adversary to the Republic, making patrols more tense and interesting for the troopers who had decided they wanted to step out of the base. Personally, I like the Sith as a concept and sacrificing the canon for this was a pretty good choice. However the issue with the Sith lies with how badly managed it is right now.
The Sith have potential, great potential in fact -- but it's not looked after at all. The people who are currently in charge of the Sith order (talking about people of the Dark Council) seem to consist of players that had resigned ages ago. So, already there's no drive to do good on Sith because the people leading it have no drive to, well, lead it. I've said this to a lot of people and this kind of applies to the Sith, "the activity of a group is directly correlated to the activity of its leader". I'm not saying the Sith need to be wiped, but this is a good thing to keep in mind before making the decision to just remove it right away. This also ties in a bit with their behavior, because if someone isn't there to reprehend Sith who FailRP and do various other stupid things, then they'll keep doing it because of the Sith seeming like an anarchist faction.
Plus, countless hours of effort has gone into making the Sith something so just kind of removing them would probably leave a lot of the server's assets really pointless. Maybe we can try a different solution?