People react negatively to this, because they fear a dystopian society of the sort we've seen in plenty of movies, and rightfully so.
But it's also worth pointing out that "consequences and reputations stemming from one's actions" is already the world we live in and always have lived in. Hell, even Hacker News has karma points, downvoting, shadow banning, and the like. There's no such thing as a society with zero consequences and zero reputations. The only real question is a matter of degree, structure, severity, reach, and various idiosyncrasies that differ across cultures.
So it would be nice to have a more nuanced discussion about this instead of treating it like a 0 or 1 decision.