Ok! I just had a better idea and altered the OP to reflect it. Weigh in on what you think!

Alright after finally getting to FW level 5 and seeing the daunting 45 wins ahead of me just to hit 6 maybe it should be level 8 grants citizenship, with the two levels ahead of it giving different vanity bonuses.

Just spit-balling an example of what would be offered:

Level 5: You can choose use the racial assault or logi your Merc picture (as opposed to the racial medium)
Level 6: Racial Scout as Merc Picture
Level 7: Racial Sentinel or Commando as Merc Picture
Level 8: Citizenship! You can now swap to this race and if you were not previously the race all the lower unlocks are now available to you, plus a change of merc quarters and station location, and starter fits.
Level 9: All racial prototype suit pictures are unlocked to choose from.
Level 10: The background imagine behind your merc becomes the icon of your race. Ultimate bragging rights.

This rewards people who fight for the race they started as slightly ahead of everyone else who needs to work harder to earn those rewards, but keeps everyone on the same page eventually.

I like it. Plus, yea dude, for us who don't play EZ mode gallente, getting to level 10 is a daunting task!