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2- nenefics include access to high ranking trainers, disposition boost towards members of that faction, and discount on training, to name a few
The only real benefit from ranking up in a faction is you get access to higher skill trainers in the faction. You may also get better prices in their stores but I'm not sure on that, I can't remember.
Aside from the access to better trainers and merchants, you also get access to more quests. These can sometimes have some pretty good rewards. For example, by joining one of the Great Houses you will eventually be able to get a Stronghold, solving Imperial Cult quests gives some nice enchanted artifacts, etc.
Edit: Forgot to say that it's not all positive. Factions have relations, some factions like or dislike other factions, and that will affect disposition.
For example, House Telvanni dislikes House Hlaalu, Imperial Cult, and Tribunal Temple (among others), and they really hate the Mages Guild.
As a mid-to-high-ranking member of Hlaalu, Cult, and Temple, and a low-ranking member of the Mages Guild, my starting disposition when I talk to a Telvanni is about 20 points, instead of the default 50 something. I often get refused service until I Charm them to a better disposition.
As I further advance in ranks, that will drop even further, and some more combative Telvanni may even start attacking me on sight :)