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Not really! The auto bandit aspect breaks things worse than my suggestion. If people want bandits to be a valid option forcing bandit status on anyone defending themselves breaks things more. Frankly I'd prefer Bandits to not be an option as me killing Joe out in the middle of the forest should not change how others see me. It's like the telepathic guards in Oblivion. Steal a piece of bread, all the guards in town instantly want you dead. That breaks immersion more than forcing the player to pick their faction as it were. Another option would be to allow players to "flag" others as player killers. As the global chat rumors etc come and go... as you meet up with roguish players etc, you could select players and flag them yourself. Then when you see them again something can be done to indicate your personal aversion to them. O.
What about making it so that to pvp you have to activate the option to harm others or else you can only shoot bandits. if your not a bandit you can shoot @ other players all you want and you just waste ammo. People that want to pvp get the bandit skin and can be assured that they will be shot at on sight. They can kill with impunity though. If they don't want to stay as a bandit they might need to get their humanity to a set point then they can disable the bandit/pvp option. That way people could inherently trust anyone but bandits and zombies. It's not perfect, but it removes the issue of becoming a bandit due to self defense. O.