Probably true, but maybe it's not really as bad as that. Maybe there's only like four factors, a race factor, a "helpful" factor, an "unhelpful" factor, and a faction factor.
I say helpful and unhelpful instead of good and evil because different individuals would have different opinions of what's good and what's evil depending on what "side" they're on.
The race factor would cover what you've done to benefit or harm that NPC's race overall. This also factors in some inherent alliances and rivalries between the races (such as between the Elves and the Dwarves).
Helpful and unhelpful covers how you've impacted the individual, their friends and family, and their general community.
These factors would also be weighed differently for different NPCs; for one, the biggest thing they care about is whether you're also a member of their guild. For another, the most important thing is that you did something to help the Elves. And yet another can overlook that you're a really unsavory fellow, because you helped his friend out of a jam.
Yeah, it certainly wouldn't be easy to pull off, but it sure would be cool to see in action. I'd like to see an RPG where the NPCs had some "real" feeling relationship with one another, where there's like six degrees of seperation from any one character to another (and to Kevin Bacon ... j/k). Where the poor farmer guy you help out, unbeknownst to you, is the King's cousin's daughter's husband's aunt's stepfather or something. lol. Instead it usually seems like 20 strangers suddenly appeared from the twilight zone and started living in a village together. (I know, I'm dreaming)
