What's the point of reputation?

[joeyjoejoe]

I'm roleplaying as chaotic stupid but this game is not reacting to my wanton destruction at all. I kill everyone in Gilded Vale before heading over to Raedric's hold. I murder my way to Raedric and he says I'm so good at killing everyone he wants me to kill his rival. I go do that and come back then he thanks me and says how much better Gilded Vale will be despite everyone being dead. I kill him too. I kill everyone inside the castle then walk out the front door only to be greeted by more friendly guards who think I'm a stand up guy. I leave their dead bodies to go hang around Defiance bay. It's a big place surely someone there will notice my track record. So far I've murdered everyone in Brackenbury yet the npcs in Copperlane haven't reacted at all.

 

In New Vegas I would have reached attack on sight reputation in most towns and have hitmen after me at this point yet in PoE reputation has done absolutely nothing. When will it start mattering, at all?

[Freshock]

I've gotten alot of dialogue options based on my reputation, but I didn't get that many before I was nearing the end of Act 2. 

[Gallenger]

A lot of people brought up my disposition - I was pretty shocked lol.