So what we have here is a simple, elegant system that provides a powerful way to model a wide range of political situations.
Oh, and incidentily people have two definitions for a term used, so we get 20+ pages of raging debate where both sides are arguing the same thing while furiously calling the other side wrong.
I love the internet.
If you think ideology is a person's attitude to reform:
The dev diary makes perfect sense. Liberals want to extend the vote, but don't want to fund the slackers with social reforms. Socialists don't like to see people left behind, conservatives are happy with the way things are. You elect the faction that will get you what you want into the upperhouse, and just like in real life the radicals of 50 years ago are the conservatives of today because the goal posts have shifted. The nitty-gritty details of running the country are a seperate issue, and you get the system you want by voting in the appropriate party.
If you think ideology is a set of policies, usually with an ideal end-goal in mind:
The world has gone mad. Liberals are those after small-government laissez-faire (not using the screwed-up US definitions here), so why are they suddenly called conservatives if they still want laissez-faire but have achieved the political reforms they want? Similarly, why do the triumphant socialists who have brought in the ideal state become conservatives? The key here is to recognise the game is using the other definition. If it helps you get it, rename the upperhouse factions to establishment etc, and think of your POPs upperhouse vote as support for factions rather than actual parties.
Coming in a week later, it's fairly plain to see that this is where all the confusion has come from. Some of those involved have even realised this, but not all. Take a step back and it should all be clear, and you can get back to focussing on how neat the system is.