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I'm not sure I agree on this being necessary, but it's quite a reasonable suggestion. I'd drop the negative relations though, since it's much easier to get and doesn't require any investment in the way the other options to block the favors do.
Even then, I think it should require actual diplomatic investment to block the favor acquisition. You can still be friends with someone who committed a spot of genocide or declared war on you. And even if you aren't friends, that doesn't mean they couldn't have helped you out with something (say, spinning said genocide into something more palatable). You could also decide to purge one alien species for being ugly, while still buddying up to a long time ally.Yeah, maybe instead of negative relations, maybe have certain negative traits block (such as "committed genocide penalty, declared war, etc". The total penalty is less important that the circumstance that caused it to appear.
Adding the genocidal restriction to favors is a lot like putting some scotch tape over a concrete bunker. Diplomatic arrangements aren't going to happen regardless.I dropped the negative relations suggestion, and added in the genocidal diplomatic stances - purifiers, exterminators, devourers.
(Accidentally, selectively or moderately genocidal empires would not be shielded - only completely genocidal empires.)