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timtyler comments on Please do not downvote every comment or post someone has ever made as a retaliation tactic. - Less Wrong
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Well, reputation systems are good. More could be said, but that is the gist.
Huh. I tend to disagree with you quite frequently, but I give your opinion on the karma system a lot of weight because you have a great many comments heavily upvoted and heavily downvoted.
My "universal karma" rant explains some of my views.
Karma seems to be a potentially-important tool for calming rogue corporations. We want corporations to be well behaved - partly since they may become powerful by developing mechanical hearts and minds. Just in case anyone is about to tell me that you can't use a carrot and a stick on a machine intelligence, I do know all about the issues there.
FWIW, I tend to mostly ignore the karma of my own posts here - not wanting to be excessively influenced by the masses.