This reminds me of the Faction Law system as per Heroes of Might and Magic Olden Era (which is a very good system)

As I keep harping on, beyond else, I'd really like to see everything in the game actually work, in particular, accurate auto combat, and thus, AI vs AI combat. I can't actually advocate for new systems when I don't think the old systems are technically sound.

With that said, making fame a more interesting resource does sound fun. This also gives more room for something kind of like Alpha Centauri's Secret Projects (not so much the competing to win races for cool stuff part, but the way factions develop over time, how they unlock new powers and mechanics as they mature). I would also hope for space for faction/allegiance/dynasty specific content within such a system.

i like the idea of choice on how to use fame , i also saw a nice idea from the upcoming endless legend title where you can spend a few turns to find a good starting location and you get a buff to everything once you settle your city to make for loss time.

faction specific quests to evolve your faction or get your faction powers in the first place. could be tied to fame accumulated to time when you can get it. maybe even have chain event to get multiple powers. 

maybe adding quests to everyone depending on starting location to improve faction , like you settled next to a coast , your harbors are better or you settled on a river you get better transportation or desert you get better resources when placing buildings on desert tiles etc.

auto resolve battles and then manually fight them if you dont like the result is in a lot of games today and i like it