The Witcher 3 has become the one I compare all other RPGs to. It might be a little unfair, but CDPR set the bar really high with that one and I do think it's time for other developers to get with the program! :)

It does feel like the developers of KCD either didn't have the time to fine tune the reaction system, or don't have the experience for it? I know my reputation dropping whether anyone sees me stealing or not would drive me insane.

Urgh, I hate that! I hate it when a game ranks up the stakes and then goes "lol never mind," which completely takes me out of the experience. If the game doesn't really care about the decisions you make, why should the player? :(