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Permit choices.
Psionic abilities.
The Empire won't raid you. This alone makes you friends with it.
More quests.
Oh and you will get raid form them (to get psylink you have to kill their mage)
And you mostly not going to get the persona melee weapon in game which is the best melee weapons
if you wanna titles(permits,psycast) and having best traders (tech wise) than make empire ally
Also for Pycasters there is one more way then Empire(enemy/ally) to get them,any tribal colonist can meditate at Anima tree and make psylink.
Everyone mentions the psycasts, but you can get them more issue free by meditating on the anima tree or quests of the industrial neutral faction.
Being allied with the empire doesn't allow you to trade with them, you need to engage with the title system and get a high enough ranked royal for that.
If you don't engage with the title system then being allied with them has the benefit of them not attacking you (their raids are much stronger than other factions), and you might get reinforcements from them (which are again much stronger than normal).
Going to war with them has the benefit of them attacking you, which while much harder to deal with means you can occasionally strip their downed units for decent gear and harvest bionics from them.
If you do engage with the title system, then staying friendly with them you have benefits like permits and trade, and the easiest source of psycaster levels, with the downside of having extra whiny colonists with specific needs.
The title system is the best feature of royality and it makes it feel like you have alternative goals in the game.
Most fun faction to have raid you though. Tougher fights earlier.
Cons: They send pawns with great equipment and combat stats.