One thing I never paid any attention to is the reputation. I'm early into my game and it's at 10. Does it really mean anything? Do you people try to raise it up? Or is it just for show?

Just curious..

There's not much that it actually does, other than track how many quests you've done.

However, it does serve one purpose. When reputation reaches fifty, it opens up a short cut for the main quest, allowing you to bypass the fourth and fifth trials (Becoming Horator and being named Nerevarine).

I believe it affects disposition.

Just one of the many cool things this game does.