Why would reputation be different from morale?
Morale returns back to its default value over time also.
And that default goes up with your "Leadership" skill.
Maybe just something simple as a daily "reputation = reputation * 0.95" might do the trick?
(Number to be determined. Plus potential rebalancing of the other reputation-changing actions might be needed.)
It might surprise players at first who have gotten used to the current simple system.
But surely once it's been in place for a while, people would get used to it?
In other words, such a change will probably upset people for a while and may also break parts of the game. So that's
two reasons not to do it.
Consider how quickly news gets out of people's heads if it's not actively being reported on.
People are quick to forget.
So why would your reputation persist forever?
News gets out of people's heads in that they stop talking about last week's celebrity and start talking about this week's celebrity. However, if they then happen to meet last week's celebrity, they'll remember the celebrity's last known reputation.
Do you remember when I made the Nations Relations system FAR more involved?
That was a similar sort of scenario where the game penalizes you for certain ill-considered or even accidental actions much more.
How do you and other players feel now about that so many years after I made the change?
It's still broken. Suppose I'm playing a Dutch merchant captain, sailing along peacefully, minding my own business, and am then attacked by a Spanish frigate. I manage to sink it. Under your system, that's an act of piracy. One or two such acts won't brand me a pirate but they will cost me my merchant licence. This, if I remember correctly, is one of the reasons why
@Hylie Pistof is no longer with us - he fought against an attacker, didn't notice he'd lost his merchant licence, and then faced a near immediate mutiny because he'd amassed a fortune through peaceful merchant trading.
In reality, that's nonsense - even in modern times, let alone in the age of sail, if a merchant ship is armed in time of war and then manages to sink an enemy ship or shoot down an aircraft, it's not a crime. Indeed, in early periods, a captain - even a merchant captain - could get in trouble for
not attacking an enemy ship. Later on that requirement was scrapped, civilian captains being no longer required to endanger themselves, but it still wasn't a crime if they chose to do so anyway. What the captain wasn't allowed to do without a naval commission or letter of marque was to take a ship as a prize.
And, of course, that rule against merchants trying to sink enemy ships doesn't bother NPC's, so I'm playing a Dutch merchant captain, sailing along peacefully, minding my own business, and can then be attacked by a Spanish fluyt who doesn't regard it as piracy - he's just obeying the rule that NPC ships react purely according to flags.