I think a lot of people are coming at this from a roleplaying perspective, whereas I'm talking about this from a game mechanics perspective.
It's a problem, mechanically, because of how contracts are distributed, your inability to preview them, and specific breakpoints and system difficulty distribution.
I am doubtful if a change from a 1.5 skull mission cap to a 2 skull mission cap, or a -20 rep to -30 rep would make any significant impact on how it feels from a roleplaying perspective. It does change how the game play side works.
Other things could be minor changes like increasing the visual difference of the reputation icons so new players notice when getting downgraded, or having some kind of warning when dropping a reputation level.
It's a problem, mechanically, because of how contracts are distributed, your inability to preview them, and specific breakpoints and system difficulty distribution.
I am doubtful if a change from a 1.5 skull mission cap to a 2 skull mission cap, or a -20 rep to -30 rep would make any significant impact on how it feels from a roleplaying perspective. It does change how the game play side works.
Other things could be minor changes like increasing the visual difference of the reputation icons so new players notice when getting downgraded, or having some kind of warning when dropping a reputation level.