Hello CMDR FDEV Beige Cowboy!
As I have feared, this is turning into some "make players great again" system. As in "crime" and "punishment", "consequences" blah blah blah. While the trend measuring system in itself is neither bad, nor good in its essence, all I see discussed is punishment, ramifications, and otherwise restraining the so-called "griefers" AND NOT REWARDING VALID GAMEPLAY.
Why not make karma a career path?
Exactly. Why isn't a criminal career a viable way to "blaze your trail"? There should be PERKS for BOTH sides of the equation. Let's take a hypothetical Carebear and a Ganker and drop them into instance. What happens? Ganker kills Carebear, of course. But what happens then? Well... It may be that this particular Carebear in his carebearing ways made lots of friends (high positive karma), among them some insurance companies who give him discounts on rebuys (just an example, don't get overattached to it). So, the gank sting would be greatly reduced. Also, the loss would be manageable, because with so many friends there are discounts and good missions everywhere, faction rep with lawful factions is gained faster because Carebear is trustworthy, model citizen... Maybe cargo insurance? Who knows. Or maybe a panic button for next time which will send yuuuge reinforcements of system security to the crime scene almost as soon as first shots are fired? Imagine someone like Dalai Lama, Pope or similar attacked, or a beloved pop-star... Even bystanders would help (and be rewarded perhaps). And the downsides? Well... if a Carebear wanders out to dangerous systems (anarchy, low sec) he could even be "highlighted" as a high value target for piracy or murder (think bounties on someone's head, only issued by a rivalling faction than he is allied with perhaps) and suffer more interdictions that way...
Now that we have covered the Carebear side, lets turn to the dark side of the force - the Ganker. Why did he do it? Why did he kill the poor unarmed Carebear in paper thin ship? Well, the answer is simple. Because he COULD. Crime lords do not ask for "pvp consent" (bahahahaha, still can't say that with straight face), sorry. And this kill, being a 100th one, has granted him a criminal rank of master. In which he gained access to the black market to BUY things from (another perk example you shouldn't be overly attached to). Yes, he will be hunted. Yes he will need to choose systems carefully, and avoid hi-sec because he could even lose his ship permanently in there. But anarchy and low sec - oh boy, they are totally different matter. For example in anarchy he can call in some henchmen (the scum of the galaxy, just like him). Low sec with bribery he can make low paid sysdef force to turn a blind eye. Perhaps he even does get info about some targets [cmdrs, npcs] doing lucrative (as in to pirate) cargo runs. As in - Yuri Nakamura will be transporting valuable data from 46 Eridani to Tionisla system, intercept before he reaches Tionisla, because we know somebody who would pay millions for that data (or for it to be lost, whatever). From criminal or shady factions which he of course gains rep faster with (as opposed to lawful).
The point I am getting at is - currently we don't get rewarded for playing "in character".
Capo di tutti capi doesn't ask for "pvp consent". He just shoots people in the face, with constant threat of the law forces catching up, but he lives an exciting (albeit often short) life. A lawful entrepreneur which has stellar reputation also lives a rich life with people helping him along the way but can be a victim of the aforementioned mafioso or his goons. The circle of life, almost ;-)
Now that is what a proper karma system could be used for. Tracking the roleplay percentage and awarding perks and hindrances according to behaviour, fairly on both sides of the equation. Of course the perks and hindrances have to be different for both career choices (as in the game should not force you to either path), but that's implementation details which I leave to Sandro Sammarco to work out.