I wish it were similar to GTA or RDR - where depending on what you did, you attract a certain type of "resistance" or hunter. The townsfolk SHOULD be scared, but the dialog and interaction doesn't change all that much. I switched from an evil to a good because of this - there isn't really any "benefit" to being a bad guy.
There's tons of benefit of being a bad guy, mostly financial though. You can get loads of extra gold by stealing anything that can be stolen. Just grab everything you can in shops and walk out the door, it doesn't really matter if you get caught, the shopkeepers will forget and you can go back to buy/sell later. Killing guards also provides extra cash as you can sell their gear, although by the time you are powerful enough to kill them *normally* (shouting them off of high areas kills them instantly) the cash isn't very much.
My character is level 53 and I switched it to master level a while ago, probably not in time for it to matter though as the guards are still easy to kill.