I like the idea of having a Federation ally in the Delta Quadrant.
I was thinking of something similar several years ago... a confederation of worlds - maybe a trade alliance with some mutual defense agreements at first - with Talax at the center. I'd probably include the Phage-free Vidiians and perhaps the Trabe (with a new homeworld established some distance from Kazon-controlled space), but maybe the Turei Alliance as well (who, with their working knowledge of the subspace corridors, could make the extreme distances somewhat less of a problem).
There are several other races that could be included: several of the races shown (or mentioned) in "Year of Hell" were technologically-advanced and appeared amenable to such an arrangement. You could also consider the potato-headed spies or the race represented by Tank Girl.
Play the Kazon up as a primary enemy, maybe giving them some upgraded technologies.
Please keep us posted.
mactavish out.
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