As we probably all have noticed, in Oblivion and other Elderscrolls episodes, Being Famous or Infamous does very little in areas such as bargaining and others disposition to you. I think your social status should have a wider impact on others. For example, if you were a renowned killer, others would get out of your way, you could intimidate others into giving you a better deal while buying and such through threats or just cuz they think it would make you think twice of soul trapping them. In the same way, others might want to impress you if your say, the champion of the arena by giving you the same discount, or because they are grateful for saving them from the dragons.

I think they are doing something along the same lines as this. I read something like a random duel with a mage if your magic skill is high enough. Like they would want to test themselves against you. I personly love the idea, because it would feel as if the world actually knows what your doing and not just a random npc saying thank you for closing the oblivion gates. Bounty hunters would come after you if you kill people, while towns-people would get out of your way or try to stay on your good side. Family members of those you've killed would be pissed at you, and come after you even if they didn't stand a chance.

Fallout new vegas was a start, but I found it strange that the different groups didn't interact at all with eachother. You could kill amost everyone in one town, but word wouldnt spread so you could be another towns savior. That said, I think you should be able to do that, but with more work involved. If you were known to be good in one town, some people in another town wouldn't believe you were a killer so easily. And the same for the other way around. If you were known to be a killer, you would have to work hard in another town if you wanted a good image there because people would have heard of your dark deeds in the town over.

But back to what your said, I also would like to see your choices of good or evil to play a much bigger roll, and the world around you would actually react in kind, not just say stuff to you as you walk by.

another thing, you should have a much bigger impact on others due to your standing in guilds. For example, in oblivion, it ment nothing to be a high ranking guild official. there is very little to look forward to except for the powers you get over the guild when your the headmaster. you should be able to influence your guild members far more, to almost the point of friendship. so if they see you attacked, the will jump in and help you.

They've pretty much confirmed this with the GI article. The Radiant Story and Radiant AI will respond to your actions and treat you accordingly.