I appreciate the feedback! Per v.07, Reputation can be spent to "acquire" prisoners that have been captured and are pending execution (via: Gathering in the Town Square > Hold Execution > Either Option (one uses gold, the other uses rep, both require Reputation > 0).
I do plan on having a myriad of uses for it in the future as well, including being able to affect the town's laws/rules to suit your playstyle (ie: a good town, cruel town, perverted town, etc).