Did a quick scan of the forum and didn't see anything similar, but sorry if it is a repeat. I think it would be nice if at the end of a character discription there would be a short note that is automatically inserted that is affected by you factions. for example a player with a -30 law faction may have at the end of their description "bob seems to have an obvious disrespect for the law" I'm not quite sure if factions do anything yet, but I'm pretty sure that they don't do very much if anything, and this would be a great way to incorporate them into role play. Also, players who like to roleplay a "good" char, and are helpful and kind to all others wouldn't do quests that help thieves and outlaws, because their faction would reflect the blemish on their record as an outstanding citizen. Only downside is that it may force players to refuse quests with rewards they want because their roleplay and their faction is more important, but i'm not really sure if that is a downside, it isn't to me, but to some it might be.
Idea was spur of the moment, there's probably many issues, feel free to point them out or give some other suggestions or variations.
thanks