-1, for a variety of reasons:
1. The issue with ENG struggling isn't because the opportunity isn't available (as others stated) as a job. The problem is that there aren't many times where it is needed, or those who have it don't do it. Solution? Come down hard on the ENG jobs and BO if they aren't doing their job. If it isn't that, then GMs should encourage more RP related to that while the shoot em up aspect is happening. Both of these could make ENG RP viable again, without the additional issues.
2. In terms of a battalion removal, space, etc, I agree that there is not room right now. With 128 people, it can be hard enough as is. Now personally, I would've +1'd this over 187th when they were added, simply because the "airborne" role is rarely useful and is already encompassed by 212th. If the 187th were replaced with this I'd be more inclined to back it. However, even they struggle with numbers and are pretty new, so adding another new battalion from scratch would potentially worsen the problem, or repeat it. As for removing Sith, they provide a completely different function (i.e. Roleplay that can be spontaneous based on patrols, attacks, etc.) that would not match a battalion being added (this was one of the problems with going to the Venator, we had nothing to do with Sith). And before anyone says "Sith don't RP," Chrome has done an excellent job changing that.
3. Jurisdiction. This is one of the big problems I could see happening. 104th handle armor, BO handle turrets/Generators, GM do gate repairs, and then you add these guys. Despite how hard people work to counter it, people will always argue and fight about who is allowed to do or is in charge of something; I see it even now with things like negotiations, interrogations, hell even Medical and VIPs at times. I think the addition of it would cause more conflict than it actually fixed.
Overall, I think that this isn't the time, especially with a new battalion just added. MAYBE if this had come before 187th, but even then there are the other issues. Like I said, the real issue is that there need to be more opportunities for ENG RP provided and those who have it need to do the job when it is available.