@DaveFromTheGrave , As
@stonedwolf points out, this is quite a necro post, but I can see you were trying to add to the existing dialogue. As a general rule, it's often better to start a new post than to dig up a post from a few years ago. So, on that end, I'd typically lock this thread. However, your thoughts matter and I'd like to extend the opportunity to hear you out. We can always lock the thread later.
As for your comment about the loss of reputation, that's debatable. If you don't kill anyone, you just get a slight ding that a few Town Hall Quests can fix. Except for Friguld, you're just done there either way, even if you don't kill the Governor. But there's no real downside of being an enemy of Friguld.
Players that are Role Playing might have a tough choice (uphold law, help freedom fighters, rob bank , rob outlaw etc). But no real impact on game play. Same goes for players that are trying to be friends of every faction. Sometimes you just got to choose.
I -think- the bigger debate is that any player that's low enough to take advantage of the gear in the Bank, is likely going to really struggle against the Director. It's not a hard dungeon save for that fiend. Players without a Bag of Holding might end up leaving behind a lot of gold bars, too.
Anyways, the mantra of the game is supposed to be Decisions Have Consequences. Some fair, some predictable, some just the Dungeon Master trying to kill your character.