Eventually the status will change.
How should we know whether or not completing faction-related missions is significantly increasing our rep with said faction? We have no way of knowing how much we're influencing our preferred faction by completing X / Y / Z mission. In other words, we're completing missions with the purpose of grinding rep without knowing whether or not we're just wasting time on certain missions. Being in the dark in that respect -- with the lingering thought of "am I wasting my time with this cargo hauling mission?" -- is an unnecessary headache, and you
know it.
As far as in-game immersion is concerned, wouldn't it make sense to seek out and ask faction-affiliated employers to inquire, say, how one might be able to help their faction in the greatest possible way? In this respect, there's nothing inherently wrong with additional information. It's simply a way of addressing a problem in the game for some players. If others don't care about faction rep and just want to complete contracts, so be it. As a cardinal rule of thumb, more information is nearly always better than less information, and giving information isn't going to do anything to prevent players that want to grind faction rep mindlessly from doing so.
The only reasonable thing to do is to provide expanded information about factions. The lack of information in this game in general, especially with respect to outfitting, is utterly absurd and has no viable reason to exist as it does.