Yeah....I've never liked the "psychic guard" concept either. It's fine to have a reputation system where after you do so many known "bad" things or whatever in a town, the guards of that town start to chase after you but...
I hope the Town Guard A.I. does not give us psychic guards that know we have done bad even if we killed the last known witness.
Along with them knowing you've done wrong even when there are no witnesses, I don't like it when the rep system applies equally to all cities/towns everywhere in the world at once, or something. Unless PE has the magical equivalent of video surveillance, a global media news system and a TV in every home, at least initially such rep. systems should be town/area based. Manage to do "bad" and escape the guards in one town shouldn't mean the very next town you arrive in should immediately know you're an outlaw and chase you as soon as you try to step foot in.
So each town/city could have a separate rep. counter and only when rep is bad in multiple places does a more widespread rep counter kick in. Or some such.
Yap, thats one thing i didn't liked either.
Hope when i kill someone in a house at night, perhaps with a stealth character, the guards stay away from me.
Perhaps the murder becomes town gossip, perhaps someone tries to solve the crime (perhaps i lay down wrong tracks to someone else ^^), but getting all guards aggro eventhough nobody did witness my crime breaks the immersion for me.