Okay, I save the town from the dragon, but then I murder a citizen. How does the game deal with giving me recognition for killing the dragon, yet also scolding me for the murder?
What happens if I join the companions, but also become a member of the dark brotherhood? Should I get kicked out of the companions? But what happens if I want to quit the Dark Brotherhood? We need an option to remove ourselves from guilds. But what if I want to join back again? Would the Imperial Legion really want my help if I'm a known assassin?
I've sided and taken over Skyrim as a Stormcloak. Should the entire Imperial race hate me and try to kill me? Am I going to get constant hit squads?
The point is, there are so many different scenarios possible you can't make a unique and detailed response for each one. If you try, you'll mess it up and you'll have players complaining that the Jarl has erected a statue for them even though they killed the steward. And if they don't do scenarios, then people complain there aren't repercussions for your actions.
You actually can't win with this.
????
I didn't know there was a contest on.......
But since there is.....
First case: To have said dragon attack said city correctly, there would have to be alternate geometry for destroyed buildings. Thus there would have to be a status buffer for the city cells. The longer the attack, the more damage. The more damage, the more flags are set. Dragonborn comes in, does his/her thing. The number and type of swap flags set determine how extreme the danger was. That sets the reaction level for the city to the saving. Voice acting would be viable only if you went with non name actors and large storage solutions; otherwise, an old fashioned text parser, which pulls from status weighted script sections. So you could have conversation ranging from 'Damn that was close!' to 'Hail the hero, you saved those orphans and my cash cow of a shop!'
But this is one kind of event. Killing the citizen... Were you caught? Were you seen? Were you ratted out? Each of those would have different consequences, and which one it was could be used to feed the conditions to start or modify another quest. And all you would need is a judicial register that was fed from the reputation flags of the murder and the event status flags of the dragon attack. If the event status was high enough, you were pardoned. This wouldn't affect your reputation with the family, or close friends. It just means you are too much the hero to execute. See the added complexity that would provide? You might have earned that statue (assuming they -did- that), but if things happen before it goes up, then it doesn't. After, well, set another flag and you find it defaced (a simple texture change).
And this holds for the other examples. Looking at it, this seems like it would be hideously complicated. But the trick is to establish rules and monitor events, and set behavioral rules to govern this. After that, it comes down to addition, and passing the results on to set flags, then playing back the actions and events that those set flags enable.
And yes, if you join the DB and get found out, you =should= be tossed from the Companions......maybe even outed as a werewolf by them to try and drive you out for good. With story pathways to rejoin. Or destroy them for the brotherhood. Or vice versa. Or become a spy. How difficult this is to structure depends on how well you create the rule parser, the lookup tables, the flag registers, and the text or speech parser. Others have done it. The core elements of this was in Daggerfall, so I know they can do it, and things have advanced enough that it should work a lot better than it did.