heres my angle on this
if the player run towns i suggested elsewhere is implemnted then the town treasury could be used to place a statue of a citizen of that town that has done some incredible feat, this would become a kinda status symbol for the town (visitors from poorpleb town will gaze in awe at the row upon row of statues depicting glorious deeds of the ppl of herotown).. this should not become over-used as the treasury funds required for it could be used in more productive ways
additionally legendary players could be honoured in the following ways
1. the bard skill - to enhance roleplaying a bard character should be able to write new songs (and weave magic into them) and teach these songs to other players
eg. heroman braves a fiery pit to kill a dragon
bardman hears of this and wishes to create a song that will provide fire resistance, he writes a song about heromans exploits and weaves into it spells of fire resistance.. thus whenever the song is used the lyrics will be displayed telling the story of heroman
2. book authoring - a player can write a book and copy it (with cost of paper /ink etc) this can be submitted to the library for all to read (maybe reading such stories could give some kind of experience/knowledge bonus)
ermm.. cant think of any more as yet but if craftsmen are given the ability to name their new products (refering to my suggestions on brewing/animal husbandry where players can create wholly new items/animals) then it is likely that many products will be named after legendary players (eg \'Heromans\' fire-water)