Sounds like a good idea to me.... Have the NPC guards chase down anyone in a certain range of criminality and every time a person kills someone else, they get worse alignment. Like have a range of name colors from white to green to yellow to red and then to black or something. If a person kills someone with black alignment, which would be the \'Evil\' alignment, they will get a better alignment instead of a worse. The alignment of the character could determine how much the alignment changes. If a \'Neutral\', which is the color directly in the middle, kills a \'Divine\', the best alignment, colored white, then that \'Neutral\' goes halfway from their current spot to criminal or something like that....
And cities would have guards at strategic spots, and they would instantly chase \'Evil\' aligned people. To keep them happy, there could possibly be evil cities where \'Divine\' players are chased by the guards.... It would be nice and balanced i think, maybe a few changes...