You could give/recieve ratings from other players depending on their opinion of you. People could then judge those people by those ratings.
Its a good point and hasn't been discussed here yet.
I agree it would fail if jack and pete are allowed to give ratings.
There are many interpretations of how a karma system should look like.
If you wanted to ban people for any reasons, you would have to know who's opinion to trust in any kind of implementation and interpretation of the system. How some other games work, is that administrators and referees of
some of the servers are trusted, or atleast know how to interpret their opinion. This is just an example, likely there are better suggestions.
All in all, such a karma system would only globally ban a player in very extreme situations. For example, an extreme camper might be someone you don't like on your server, but would never be a reason to global ban a player. Using cheats or being known as a regular deconner might usually be a reason to global ban a player.
Local banning as it is now would still be in place for smaller offenses, violations of rules that only applies to that particular server (e.g. usage of strong language/extreme camping/one-time-deconning/noobing).
edit: Also there has to be rules about ban length. For example, for a one-time offense of using cheat clients may lead to only one month of ban time. If caught a second time, or when it has been observed that a player has tried to avoid the ban, the ban is extended to a much longer time.
Life-time bans usually just ensures that the offender tries with extreme means to sabotage a servers operation.
Note that the purpose of these systems is not to punish people, but is there to allow easy maintenance for trying to keep games and servers a lot more freed of trouble and troublemakers.
edit: Another point is, from some of the other threads i gather that there are quite some players around that would just try to use a cheat because of curiosity or 'investigative purposes'. For these occasions we could also have a cheat server, a server that explicitly allows cheats.
First plus is that it invalidates the excuse
'i just wanted to try it out' when caught on a server which does not allow cheats, and second it might be enough for those cases that really use cheats out of curiosity or 'investigative purposes'.