I was thinking of going Clear Sky because they've got a fairly secure base (and the best suits, according to the readme). 2 routes in leading to just Cordon, rather than the 3 of Yantar (1 of which I can't see on the map or use for some reason, but the enemy can.
Edited:
Only problem is, grinding rep to join any other faction that Mercs is fucking tedious.
AFAIK the suits actually aren't much better in terms of stats, but you have a choice between a combat suit and an anomalous operations suit at each tier, which is nice. Still, the small squad sizes is annoying, especially when you call in reinforcements and one or two guys rock up to hold the vital choke point against hordes of Defiance.
And yes, bandages, fall damage and mutant health are still fucked up.