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A few more ideas that are even less likely to ever be implemented 
Notoriety decay:
High notoriety should only decay via normal gameplay. For notoriety above one, only decrease notoriety on change of instance, depending what you did in that instance (scan stuff, sell stuff, do combat), in such a way that in normal gameplay it typically takes about 2 hours to lose a point.
Make paying off notoriety an option, but a very expensive one (and not the default).
There are other ideas I've seen that could work (e.g. slower decay at higher notoriety), and would be compatible to integrate with the above.
ATR/system security informant:
A clean CMDR (no bounties or notoriety) who is attacked and killed by a player gets to be a system security informant, or for a high notoriety attacker, an ATR informant. Basically they get to instantly call down a security/ATR wing next time they instance with the attacker or any sufficiently notorious CMDR in normal space. Could be by agreeing at rebuy to install a temporary single-use module, or by having an escort wing in-system. Idea is to reduce the arrival time of security, giving them a higher chance to damage and inconvenience the attacker, reducing their kill rate.
ATR beacon:
Receiver module that a bounty hunter can equip. When a notorious CMDR enters the hunter's supercruise instance after escaping ATR, a beacon is activated at that location, that the hunter can use to locate current criminal activity.
Minor faction criminal monitoring:
Being allied to a minor faction allows you to see, in galmap, the largest CMDR notoriety or criminal bounty of players who instance at any facility owned by that faction, whenever you are in any of their controlled systems, or docked at a facility they control. Thus an area of space can be guarded in a coordinated way, or threats avoided. Creates a beneficial consequence of interaction with the BGS, and growing an allied faction.
Increased safety on "friendly ground":
Reputation of a CMDR with the local controlling faction, as well as system security, is factored into instancing mechanics vs. notorious players (except hostile powerplay pledges, for meta-game-killing reasons) when the CMDR has crimes on, making instancing with such players less likely. Bounty hunters have the option of switching crimes off (or hunting away from home) to increase bounty encounters. Further incentive to interact with the BGS, also for criminal CMDRs to subvert BGS control, I guess.
This might risk bad instancing, but isn't as heavy handed as the block function (could be designed as such), since it relies on combined factors of notoriety, reputation and system security level. It may cause people to block less. I still have reservations and interested to hear if people think it'll still screw instancing.
Notoriety decay:
High notoriety should only decay via normal gameplay. For notoriety above one, only decrease notoriety on change of instance, depending what you did in that instance (scan stuff, sell stuff, do combat), in such a way that in normal gameplay it typically takes about 2 hours to lose a point.
Make paying off notoriety an option, but a very expensive one (and not the default).
There are other ideas I've seen that could work (e.g. slower decay at higher notoriety), and would be compatible to integrate with the above.
ATR/system security informant:
A clean CMDR (no bounties or notoriety) who is attacked and killed by a player gets to be a system security informant, or for a high notoriety attacker, an ATR informant. Basically they get to instantly call down a security/ATR wing next time they instance with the attacker or any sufficiently notorious CMDR in normal space. Could be by agreeing at rebuy to install a temporary single-use module, or by having an escort wing in-system. Idea is to reduce the arrival time of security, giving them a higher chance to damage and inconvenience the attacker, reducing their kill rate.
ATR beacon:
Receiver module that a bounty hunter can equip. When a notorious CMDR enters the hunter's supercruise instance after escaping ATR, a beacon is activated at that location, that the hunter can use to locate current criminal activity.
Minor faction criminal monitoring:
Being allied to a minor faction allows you to see, in galmap, the largest CMDR notoriety or criminal bounty of players who instance at any facility owned by that faction, whenever you are in any of their controlled systems, or docked at a facility they control. Thus an area of space can be guarded in a coordinated way, or threats avoided. Creates a beneficial consequence of interaction with the BGS, and growing an allied faction.
Increased safety on "friendly ground":
Reputation of a CMDR with the local controlling faction, as well as system security, is factored into instancing mechanics vs. notorious players (except hostile powerplay pledges, for meta-game-killing reasons) when the CMDR has crimes on, making instancing with such players less likely. Bounty hunters have the option of switching crimes off (or hunting away from home) to increase bounty encounters. Further incentive to interact with the BGS, also for criminal CMDRs to subvert BGS control, I guess.
This might risk bad instancing, but isn't as heavy handed as the block function (could be designed as such), since it relies on combined factors of notoriety, reputation and system security level. It may cause people to block less. I still have reservations and interested to hear if people think it'll still screw instancing.
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