Karma or anything similar are just too gamey - oh, you killed a baby? EVIL! Oh, you went and donated a few bucks in a temple? You are GOOD! again. Measuring how good or evil you are on a numerical scale and NPCs reacting to that number, instead of naturally reacting to your actions in general, is the problem. Committing genocide isn't negated because you went and helped a grandma across the street. You should be the most reviled person in existence if you commit genocide, regardless of your previous acts.
