OK,
  So, I had a list of 290 possible people, I narrowed it down to 87 (hooray for me).
  The problem I have is Quantity vs. Quality and the Faction Mapping question.

  So it breaks down into 4 possibilities:
1) Keep the quantity, do not map each person to a faction.
2) Keep the quantity, map each person to an existing faction.
3) Cut the quantity and describe each in further detail, do not map each person to a faction.
4) Cut the quantity and describe each in further detail, map each person to an existing faction.

  The point of this list/feature is to provide plot hooks, setting details and inspire the players with cool ideas.

What would you suggest?
Link:
http://dindenver-gc2k9.blogspot.com/2009/09/notable-people.html

Have you managed it yet?
If not, i may have some suggestions, that is, if i've understood the situation correctly:
One: Do the Characters you feel is most important to the Game, and/or that you fancy the most.
Two: Consider a specific Plot, or a few(only 1-4!), and do the Characters needed for those.
Three: Only map those Characters that really needs it to Factiions.

What do you say? Have i misunderstood you, or did it help?

Cat,
  Thanks!
  Well, I put it on the back burner. I fixed my non-conflict rules and am moving on to writing my rules in human-readable language.
  I dunno, I don't want to turn Thomas Edison into a Signature character. But I want to include those kinds of characters in a setting area to sort of set the tone and maybe give a plot hook. The game is really not about interacting with these guys, it is more about saying, "a lot of stuff happened between 1870 and 1900, check this out!"
  For instance, to answer your #1, none of these characters is important to the game, except to get the players in the right frame of mind. And for #2, there is no specific plot to the game. I don't want to setup a meta plot or create something so big that the GM and the players cannot influence it for fear of breaking some kind of canon )I do want to insert some canon materials into the game, but not in relation to famous real world people).
  In fact, I am definitely not going to map each any of these to a specific faction. I think it pins the setting down to tightly. I think a game where Thomas Edison is  a Super Scientist is just as interesting as Thomas Edison as a Sorcerer or Thomas Edison as a normal human who is politicking his ass off. And I am definitely not going to stat them up or enumerate their primary motivation. I want these to be something you can pickup and use for inspiration or throw away as not germane to the story the PCs are telling. Even if your plot revolves around the Current Wars between Edison and Tesla, it doesn't mean that either one of them needs to be statted out or even met by the PCs.
  So, the only choices I have to figure out is between #1 and #3 above. Either way they are not mapped to factions, so it is a Quantity vs. Quality decision...

  And yes, I think you did help. I appreciate your input.

I understand a bit more what you meant now: Historical Background.
The usual way, as far as i know, is to include Info on Important pepole depending on how much is known of them, or how important they are to the subject in case.
In this case, another important thing is MOOD.
That is, what people is important to the Setting itself, and to the Mood of the Game?
This may be far more important than the others, if you want to be more heavy on the Steampunk Genre.
If it is more adventure-styled, then consider their importance instead,
and if you look to the more historical way, put down info depending on how much is known.
Essentially, the quality can vary, depending on how important the character is, and if you don't want to do too much, the "not-as-important" ones only get very little Info, or none at all.
........ I Do think that approach would suit the setting as well... Question is, does it suit your Game?
(This is really beside the point: Yesterday, i got lots of netviruses & such, but got quick help. I'm still a bit jitty from it, and hope my new, current virusdefenses is as good as i've been told... I'll avoid writing of this, but as said, i'm still jitty.)
Best wishes,
                            Catelf.

Cat,
  Cool, yeah, I think the reason I want to include them is two fold:
1) I want to pin down what I mean by victorian, steampunk, dystopia, etc. these are words where for some people they have pre-conceived notions I have to overcome and for others they may not have a good idea of what it really means in play.
2) Set the context as far as how much the world is changing and how much these changes will raech into the future. I mean Ford is just learning to be an Engineer during this period while Bayer is a chemist who will soon spawn a pharmaceutical empire, right?
  Thanks for your feedback, it is really helping to solidifty what needs to go into this section.

I do like to help out, especially since my own project is going nowhere fast....
If your Steampunk Setting is very different to what happened historically, that should of course be noted in the "History" of the Game, as well as in the historical people's..... but maybe that is just me stating the obvious?
But i think... maybe one or some of those WE know as important, in that world instead took another direction, leaving his/her work to someone else?
Just a comment, take it or leave it.
I mean, that could have been the deciding factor(s) as to how it went different.
...........    ............... .