Karma doesnt seem to do anything.
Other than characters dont like me.
Actually, yeah it does. Certain characters will talk to you differently if you have high or low karma. For example, you know that former Merc in Brickton? If you have low karma, he can actually follow you around. Some merchants will sell you more or less, depending on your karma, although it really only works during the extremes. I actually went with going full-on white knight and ended up being given the Angel Armor from the "Brickland Saint" quest.
I'm going for the Paladin armor. It gives you 10% damage boost and 15% Defense boost.
It also shares a name with my clan, but that's a coincidence. I'm pretending it's not.
The paladin armor is actually pretty good, considering it can be upgraded to give you up to 50% more damage and 50% more defence.