[color:"orange"]Karma points and the like are nice but they have one big problem - someone needs to judge what is good and what is bad.[/color]
There are lots of situations where that would be easy to do. If you want to concentrate a lot of effort on dilemmas, though (where there'd be little or no net effect on karma), it might not make sense to also try to implement a proper framework for karma. To make karma actually mean anything there would have to be quests with various degrees of good and evil choices, at least a fraction of NPCs who can detect karma, and various benefits and penalties for karma level depending on the NPC (individual or group).
