Everquest had something similar to that. Raising rep with certain areas would prevent you from going into other zones/cities etc (by prevent I mean the guards would attack you). Also, DaoC did a good job with 3 factions as I think it sort of balanced out pvp a little. (granted DaoC was really designed around pvp/rvr)
As for RIFT goes: I've put about 6ish hours in so far and I'm really digging it. They did just enough to make the game interesting and exciting versus WoW or any of the previous MMO's over the past 4-5 years (in my opinion). The rifts spawning and the mobs invading is really neat. It is a little aggravating at times when you are in a low population area and there are 20 mobs invading and you have nobody to help. There are 3 of us grouping and while we can get the first few stages down, getting through the timed stages in low pop. areas is nearly impossible so we lose out a little but they are still fun. Another thing I really like about the game is the combat. It's very Warhammer/EQ2 like in that you get to constantly attack and use skills/abilities while auto-attacking but you don't 1-3 shot mobs. I enjoy that and I think it makes pvp a lot more fun. I'm only level 15 so far and I haven't made it to any major cities and I've yet to do a dungeon but so far, I'm really digging the game. I spent a little time crafting and some of the little changes from WoW and such are cool like being able to dye your gear or add bonus stats to them upon creation etc.
Side note: Being able to "rogue/blink (more like evade but I'm relating it to ninjas from FFXI)" tank is pretty damn sweet imo. I'm probably going to end up leveling a cleric as I love to heal but I also really fell in love with being a rogue tank.
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