Yeah, to elaborate- Anvala hates outsiders. They're the kinda folks that shoot first and then inspect the corpse after dinner. According to it's page it's 'constantly under siege'. Cathedral's a key trade hub between Yesha and the Eastern Factions, and so they'll be a more valid reason for a Yeshan, an Arashi, a Chaladonian and an Anglean to be there, rather than in Anvala, where they'll all be stared at. Case in point- a Yeshan military vessel isn't going to get within 10km of Anvala without getting shot down, let alone inside and chatting in a pub.
Cathedral also has a Guild Hall, and it's the main link to the trans-ocean trade route (Southern), so having any Mercantile Guild arcs will be really easy. I think one of the main problems is just thinking of why the main character and the arc characters will meet in the first place. The only faction I have trouble putting in Cathedral is Arashi, because even though they're nomadic and scavengers they won't come up that far North, unless they're looking for something in particular (visit to Paritus, perhaps).
Edit: No worries Gilder, I've had confirmation from Jess saying that Cathedral was a trade hub way back in my old Anvala thread, and from the Anvalan page you tell it's anti-foreigner. The speculation comes from the location, while added notes (from the Guild page) say that it has a Guild Hall there to boot. That and it's the center of several trade routes- Yesha to Chaladon, Yesha to Baronies, Anglea to Guild, Guild to anything North of the Wastes. The only routes it hasn't got are Yesha to Anglea and perhaps Yesha to Guild
The Yesha to Guild is a tough one, as I imagine the less valuable goods travel direct, while the expensive ones are shipped over the ocean, as to avoid the League.