I think we need to stop the reputation you get from free invites.
Why? Is too easily exploitable and gives people the idea that you are indeed trusted when you aren't.
The whole point of the initial rep system (thread based) was to tally up actual trades where trust was indeed needed to carry out the transaction. With free giveaways thats not necessary. There's no trust involved. There's no risk involved.
So in the beginning, someone had 10 rep points, it meant they traded 10 times and didn't scam.
Now someone has 10 rep points, it means they gave away 10 demonoid invites or some really easy tracker that gives out free invites. For example I can sign up to stmusic or what.cd, get 10 invites give them away and get +10. It sure as hell doesn't mean 10 trades.