The best reputation/alignment system in a CRPG I have ever seen is Pillars of Eternity's reputations where you build up a rep for being Honest, Deceptive, Brutal, or whatever, and it opens up dialogue options for you later. Combined with your regional reputations so that you could be seen as a hero in X place but not well-liked in Y place. It is much more granular and intuitive than alignment, which is rather obsolete and originally only really served as a cosmic team jersey rather than an RP guide. It was a system that both acknowledged the decisions you made as well as recognized the view of being a hero or whatnot was mostly a matter of the perspectives of people other than you.