2- some factions should be able to have a bounty on the player (purple town could want you for 129 gold )
3- ranks should be different from how respected (but do help) you are. there should be negative respect, and with enough they should turn hostile. the player should be able to get a high rank but low respect, or a low rank with high respect
4- if you stop all witnesses to something, no change should happen
5-there should be a "master" faction for many factions (guild halls leading to the guild for example. a killable messenger should relay commands) for a serious crime in a town/faction, this should get reported to a central power (for instance, while purple town's fighters guild views you as a traitor for mass murder, the fighters guild in red town dont know because you killed the messenger to the master guild, and you can still do quests for red towns fighters guild/rank up.
6- while the capital city has decreed that you are the most wanted man in tamriel and sent messengers to every town,city,and hamlet of your arrest, going into a town that do not know of your name should prevent guards from miraculously deciding to kill you.
this works for good stuff too, if the player ranks up several levels a guildmaster may not believe the player without being told. if the master faction is telling its child to forgive the player then a message must be delivered
7- just like child factions relaying messages to master factions, npcs should relay information to the faction after a delay (Killing or persuasion should stop this) the player should be able to wipe out a village and have nobody know about it (untill someone travels there) if the faction knows the player well enough then everyone will learn of the player
8- becoming faction a's best friend could affect faction C's perception of the player but with variety. liking badit group 12 should decrease standing with guard group b when they learn of it. being very well liked in one child faction could help with a sister factions standing. liking rebel group b and being caught (traveling with them) could decrease standing with loyalists, although if not seen then the player could switch sides