And this is the problem.
Fable is not supposed to be about perfecting your social credit score!
It's supposed to be about choices and freedom, even the choice to be evil, and to recognized evil for what it is. Not moral gray area, not "a matter of perspective".
If the game's morality system ends up the way you wish it to be, it will have completely failed at what Fable has always been about.
Fable’s reputation system is basically trying to teach people: Be likable. Help people. Build trust. Treat people well even when they are not designed for your attraction. The game is giving players a social tutorial.
And some still went “but are the NPCs hot enough?” You failed.