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Jactor

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Factions are not rebels yet they are like group of people who have opinion about something. Even if you know that some people support something that you as king dont like you cannot work against them without reason. I generally like faction system as it makes dangerous revolts possible and give more to do for lesser nobles.
 

Malibu Stacey

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If you smack them down after their faction goes to war, you can imprison people who flocked to their banner. The peace settlement will only automatically imprison people who were members of the faction when it was put into action. Those people may be members or leaders of other factions if they disliked you enough to join a civil war against you which is why it may be confusing.

You should also be able to revoke titles from them if you have Limited Crown Authority or higher.