Apolegies if this has already been mentioned, but I like Achaea's way of doing things. It's an online MUD and killing anything doesn't really give you epic loot. However, killing some bad ass enemies gets an honour adding to your character description. This description is free for all to read, and people are usually quite impressed when they see some with lots of honours etc. Here's an example:

Disciple Lyore, Initiate of the First Order (Male Rajamala).He is 45 years old, having been born on the 22nd of Miraman, 371 years after thefall of the Seleucarian Empire.He is unranked in Achaea.He is an extremely credible character. ... More statistic stuff ... He slew Auntie Maim, stopping a nefarious experiment.He succeeded in bringing song back to Bopalopia.

There are a fair few of these honour lines that you can get, and people with a lot (more than my characters measly 2 :P) are highly respected.

What do you think on that?