I must agree that I'm not a big fan of the team format so far. Several reasons:
1. We also had a teammate that did not communicate and dropped early. That immediately put my team at a huge disadvantage against all other alliances. It's showing now, as the vultures swoop in to finish off the weak.

2. The natural enemy situation complicates things dramatically. As the EL/GI/WA, there is only one alliance of the 4 remaining that we don't have a natural enemy in (AN/RA/DW). Negotiations with the other 3 alliances have failed for the most part because of this.
3. In addition, the natural enemy piece isn't balanced: Here are the alliances followed by the number of opposing teams with natural enemies.
GN / RD / SO 3 teams with natural enemies
AN / RA / DW 2 teams with natural enemies
DA / DE / TR 2 teams with natural enemies
EL / GI / WA 3 teams with natural enemies
BL / UN / WI 2 teams with natural enemies
Some thoughts:
1. Remove natural enemies from the team game. All teams are on equal footing and diplomacy is far more open. In an individual game, I can negotiate with 13 other players. Right now, in the team format, we were able to effectively negotiate with 1 alliance. Remove the natural enemies and I can talk to 4 teams with no in game challenges.
2. Diamond's suggestion of evil vs good works as well. So does Hawk's suggestion.. maybe a big 7v7 would be fun. This would be more about coordination of a huge team of 7, than it would be about diplomacy. Could be very interesting.
The other challenges (players not communicating/dropping) are outside the control of the GMs and just part of any game.
I am still having a good time in this game as my other teammate is very communicative and it'll be challenging fighting off 5 different kingdoms at once. I will probably not join another team game in the future, however.