It's the only thing that makes sense so far. Wear the cloak and lose Karma while gaining fame, loot, both desirable yet not in keeping with the virtues, or don't wear them and lose out on these "worldly" rewards. On top of that, what is it that the "voice" to those infected by blackrock says? You don't have enough "lifeforce"? And isn't that something that you get in the Good/Evil system that's only on Siege? And are they not working on redoing factions? This would seem to be a possibility.