Agreed, but that hardly qualifies it as a "glorified FPS." In Paradise Falls, becoming a slaver means all slavers in the game are now a friend. Raiders would not be friendly if you are evil because you being very evil would mean you are actually more of a threat. Raider groups were basically gangs, and not being in the gang means you are an enemy. Simple.
When confronted by Regulators/Hitmen for the first time, a dialogue opens (although no matter what leads to fighting).
There would still be hostility yes that I am sure of. But they would still be more likely to listen to you first. They know you are a bad guy. "Not a Cop" if you will. They would be willing to trade with you maybe buy slaves off you. Not just attack all the time. They might even try to screw you over on deals. That would make good quests making sure you don't get double crossed kinda stuff. Or double crossing them.
With the Rep system people of your karma level should be more willing to talk before shooting.
I said this above I added it. Having ways to make deals with talon comapny to get them to stop attacking you would have gone along way to help the game. Every 3rd building I left the same 3 dumb guys would try to kill me. They would call me mr.goodie two shoes when I have very bad karma. Why?
They are mercs they would be willing to make a deal. Say I had 10,000 caps worth of stuff. I am sure one group out of all would make a deal. Go back to their boss with some other body with your vault suit on and say "we got him/her" and get the money from the boss and cheer for a job well done, plus your bribe money. That's a great deal!
But you can't do that in the game. Nothing you do can get them to stop. To me this just makes the cannon fauter they are there just to shoot not to talk to or make deals.
Making the game more of a FPS then RPG.