There can be a system that works along this line, but not a straight "Good or Evil" system.
SpiderJerusalem wrote:agree on taking away teleportation.
btw: auras whould suck because morals are stupid.sometimes I help newbs and give them free stuff, sometimes I steal everything they have.depends on my mood and how they behave.what aura would I have?
Karma system could do the trick. Points gained in one direction can be small, but points loss when doing the opposite is huge.
You can +1 ten times, then do something that's the opposite and get a -10 in one go. So if your the type that changes your mind too often, you get penalized more easily.
This also means the system can't affect the game drastically in any ways other than small cosmetic stuff.
It's not a actual system that the OP states, this is a idea of my own that kind of uses the HnH's feature of treating people as a gray area.
Maybe if there's a system that works alongside communities and groups of villages, like "Wanted Posters" and such.
If a group of village leaders are able to cooperate to "describe" murderers into parchments, and able to draw them (needing cartography or a art related skill I think), it'll probably work. Then the parchments can be copied and handed out...
The only thing I see that might be abused and exploited, are propaganda, since all you need to do is spam parchments and alt characters, and toss these posters everywhere so everyone thinks a person is evil so they target him......
Well. Instead of all that tidbit, it might be simplier to have a bulletin board or some kind of parchment related board that enables you to put pictures of hearthlings and a caption/message under them.
Note: Critiques & Idea's rule of anti-multiple ideas stifles creativity, and enables people to troll and flame at their expense.