I like those ideas Blackfire. I would also add that whatever system they use for us to 'level' (i.e. XP, credits, whatever), they should offer those points for achievements based on who you are and what side you're playing. For instance, it would be unacceptable for a Federation captain to fire unprovoked on an enemy. For the Klingons? Not so much.
This way we would reward those people who played their characters more according to their race/affiliation. Since we all LOVE to play that character that is the exception to the rule, we could go that path, but it should make for a much tougher road. If someone wanted to play a 'Worf' type character (Klingon but loyal to Starfleet) the system should accomodate that, but they should have to undergo some sort of 'betrayal' mission so they could switch sides. EQ2 does something like this, allowing characters to turn to the light/dark side if they wish.
The one thing I REALLY don't want is for Cryptic to shoehorn us into accepting roles. If you wanna play a human that becomes a Klingon spy, you should be able to. I can't stand when a game forces you down a path or makes up some ridiculous reason why you can't do what you really want. If I had a unique character and wanted to play it on STO and couldn't, it would be a major dissappointment.
However, I don't think Cryptic will do that. So far they've shown an adaptability and a leniency towards the 'one size fits all' means of character creation. As far as the whole 'awards and medals' thing goes, if you're playing Fed, you shouldn't care. If you're Klingon, honor matters more than baubles. If you need a cool new award every time you tie your shoes, join the Cub Scouts. ;)
And that's all I gotta say about that.....