I had an idea earlier this morning that I thought I would share with people here on the forums and see how well it was recieved.
Imagine that apon doing so many missions instead of just getting the next rank, you gain so many Favor Coins (from the Coin Lords)[So if you have 400 House K favor you get 400 House K Favor Coins]. Now here's the cool part.
You can normally take the reward that you would get for reaching that level, such as for House K getting the extra bank slot. Or you can exchange your favor coins for items fitting the nature of each faction.
House P = Might equal power/magi items, robes, staves, scepters, daggers, or jewelry.
House D = Might equal melee weapons or returning special ammunition.
House J = Might equal wands, scrolls, and even magic clothing.
House K = Might equal armor or shields.
The Silver Flame = Might offer blessed/holy items or blessings.
The Coin Lords = Might equal actual money rewards, titles, or even a residence.
The Free Agents = Might offer special areas such as a black market, or even strange unusual islands.
The Agents of Argossen = Might offer Acient Trinkets of Forgotten Power, or Rare scrolls.
The Tweleve = Might offer special pets/familiars/servants.
You do enough favor to get 400 favor from House K. You can be done with it and respected, or you cash it in for something rare from their vaults. The choice is yours. If you do cash it in, you can run the quests again in order to build it up.
You can keep cashing in the favor in order to earn extra rewards, giving high level characters reasons to keep playing after they're capped and after they have 1750 favor.
All items would be bound to that character, and 'favor coins' wouldn't actually be an item. The representative of a given faction would tell you would have so many based on available rank.
Somewhat like the idea of Influence from Vampire the Masquerade.