I also advocate a different starting area for each race to support the roleplaying feel.
It would be nice if quests from both factions overlapped already in the starting areas to create interaction among players on PVP servers. For example, one faction could have the task of escorting a caravan with food to a settlement and the other faction has to raid this caravan because the food comes from their territory.
Both factions want to fight against hunger in the home settlement.
Optionally, food can be collected elsewhere and PVP activities can be avoided.