Looking for a game idea

not sure what you're for...

I'm a great believer of old school D&D style of RPGs, you create a character from scratch and you live his life, so as to speak. Along the way, you save the princess, slay a dragon or two and save the world. But somehow i think a parody of RPGs/MMORPGs would be a fun approach to design a game, take a look at the Order of the Sticks - started off as a web-based comic, and now have its own boardgame.

I'm not sure how the mechanics of designing such a game would be like, but i sure have an idea how i would want the game to be.

Game Environment:
Fantasy + Sci fic and Horror elements of cos! I would think that although it's a parody, it should feel like a real RPG/MMORPG. I want players to grin at the obvious dig at other games while enjoying the game mechanics, system and story.

Game Mechanics/System:
I would love input on this. So far, the tried-and-test method of XP leveling works best. But an idea would be increase of increasing XP and leveling up, completing a quest or killing a monster would reduce your XP and eventually reducing your level to 1. Another alternative to XP is Karma points, you gain or lose karma points according to your actions. Kill an innocent bystander? Lose 10 karma Points. Save an annoying damsel in distress? Gain 10 karma points. With this system, only certain skills/items can be accessable to a range of Karma Points. For example, The Morbid Dagger will only be available to characters with -50 Karma Points and below. Titles will then be given to characters who reach a certain Karma Level, Ranique the Rude has a Karma Level of 0 to -10 while Sarah the Benelovent will have a Karma Level of 20-30. OR if you neglected to save a number of damsel in distress, you gain the title of 'Your Name the Jerk' and if you kill too many innocent animals (those who play WoW would know what i mean), you would gain the title of 'Your name the Animal Abuser'. And as the game progress, it would be harder to gain (if you're good) Karma Points and easier to lose Karma Points.

I'm still trying to figure out the backstory, as well as the character development portion. Would you think this game idea will work?