Introduce a new status, beyond Wanted, called Outlaw
A major faction can Outlaw the serious criminals, and this means throughout that faction space you have Hostile rep, all faction ships and stations attack on sight, players can attack without fear of fine or bounty
Outlaw status cannot be paid off, like a bounty
If your ship is destroyed in that faction space, then your escape pod is captured on docking and you spend a real-time duration in the brig, say 2weeks realtime, during which you cannot use your commander account. Multiple commanders, once implemented, would enable you to play your other commander though.
Crimes that would justify Outlaw status would be kills in station or in no-fire-zone and that includes ramming ships to death in the toaster
This fits the gameplay logic imo. I don't like rules being implemented that don't fit the gameplay logic or which prevent a player choosing one action over the other. If a player chooses to kill within a station, launch missiles through the toaster or other cunning attacks then they should be able to execute these. But the consequence MUST be logical. Currently the station and faction response is near zero, which is not logical and takes away from the gameplay