The karma system is good in my opinion.
Making it more sensitive like it is now gives Traitor's more of a chance to get away with things. Player's (who don't have the bug -_-") are less lenient to kill on what little suspecion they find, unlike those servers where they reset their karma, you are more care free on the fact of losing karma.
This makes it more fun for both the Innocents and Traitors. Though most may not like it, it makes you have to think more When you mess up, it's kind of like learning from a mistake in life. You killed a dude becuase he had a knife, but turned out to be baiting. I'd learn later on that just because they have a knife, doesn't mean they're traitor.
Anyways, other than that, there is also the fact that it gives you something to work towards.
I remember I was so bored for majority of the time I played on those servers that reset karma when RND was down. Also, the admins were extremely more strict about rdming and such, (one admin had apprenlty perma banned 4 players in one day?).
Once this karma bug thing wheres off, this system for the karma will be ultimatley better in my opinion for said reasons.
Sorry if things seemed out of place or what not, but this should explain what I'm talking about.