In the next update why not allow Pc's to make non lethal gifts to npcs? I'm talking about giving them weapons and armor through reverse pick pocketing and not being punished. I mean, who wouldnt like a free daedric battleaxe am i right? This would really tie in to how i'm playing my "noble hero" role at the moment, i'd love to arm the town guards with the best weapons I can craft and not be punished for it.

Would be cool
there isn't really that much unscripted ways to be good, and there's so many unscripted ways to be Evil

That would be awesome! I have often tried this when rescuing NPCs from dungeons. But they never use the equipment I give them. I mean, if I'm a hero and I come to save you and you are strong enough to wield the badass weapon I happen to have... why not? At any given time I have on my person a cache of extremely powerful weapons, but I personally use underpowered skyforge steel war axes (dual wield). So, I'd be happy to give these death dealing weapons to underpowered individuals. That way perhaps they would keel over at the first sign of struggle.

I would like it if we could give things to the prisoners that we rescue, and then see them use it.

I gave one prisoner some leather armor, a weapon, some potions. He never put the stuff on and he ran off and played with a bear.

However, this could lend itself to many misc quests and good will quests which would tie in nicely with the Reputation system we don't have.

One time a beggar gave me a hat.

I do that all the time. I once decided to play Santa Claus and doll out some gifts to some people.

Talen-Jei got 30 Flawless Amethysts
Ingun Black-Briar got 40 Nirnroot, Nightshade, and Deathbells
Ysolda got 25 Mammoth Tusks
The Kahjiit Caravans got 50 Moon Sugar
Ulfric Stormcloak got an Imperial Sword (Legendary)
The Shatter-Shields got Aegisbane
Heimskr got an Amulet of Talos

Maven Black-Briar got an Iron Ore and a bottle of Honningbrew Mead

Oh, snap!

Too bad there's no coal in Skyrim.

I would also like to see the effects of giving beggars money.

XD okay.

I'm gonna try this right now.
Awesome gift choices, by the way.