I think that the humanity system is flawed, but that we should keep skins just add more skins. Have a default skin for newbies a skin for people in the morally gray area etc. I agree that letting everyone know that someone is a bandit is not the best way to handle things, but I do like that it goes along way in creating factions among the survivors. Another option that I think might work is that instead of a skin use some kind of rep system that updates based on proximity to other players. Say you take out a group of people and leave no survivors your rep would stay where it is, but if one of the group survives and gets away then your rep changes based on supposed word of mouth to the other survivors. Just some ideas