Well i would suggest that for arguments sake that it was implemented in the game then you would also get a better rep when dealing with those of the same race,also if a particular race didnt like yours then your reputation(rep) would suffer as well.
E.g you are an elf and so when meeting other elves you get +10 when talking to them.
Races which are neutral to elves say humans will get a normal rep but say dwarves would see you -5 as to what you already have as general rep.
Being evil? You have played dungeon siege i take it?
I have said i like the horse idea,i would just say that before you can use the horse you have to perform the quest for the owner of the horse who would then allow you to rent the horse for a charge.
Having a horse would maybe help you empty the dungeon faster but the horse would not be able to teleport when you use the teleport stone and so you may end up playing longer.
