Geez, Ranger. That's a good point, if scary. At most, you need to rid a few leaders (though maybe just pin their ears back) on the opposing side, and you have a new group of followers. As long as your blitzkrieg attacks are succeeding, you grow faster and faster (having to watch for internal competition).
Still, it explains how large corsair bands (10, 20, 30 ships) could form in short order. Probably there is a point at which things get too big and you are almost gauranteed to have some branch split off or attempt a coup, but still... the prospects for 0 to N (whatever N ends up being) growth is pretty impressive. And I think that fits with Vargr Psychology.
It also means Vargr wouldn't often commit attrocities. They might sometimes space other races who weren't bright enough to join up with the Vargr pirate leader, recognizing his 'charisma'. They might space them if they didn't have value. But if you were smart enough to throw your hat in with the Vargr or to tell them you had a rich uncle, you'd probably be kept around (at least for long enough to prove the point...).
I bet humans used to operating in the fringes of the Extents must have learned how to turncoat pretty fast too, as well as the local Vargr having realized not everyone really means it when they trade sides.
Interesting.... there's an adventure or two in here somewhere.