Having a bad alignment and turning red does influence you in some aspects. It is worth to mention that you will be a target to everyone in the game, you will not be welcomed by your own racial towns and you will be attacked by the guard towers. Moreover, you are not able to enjoy something as others do who are not in red. For example, you are not allowed to bind at the same bindstone as normal players. What is the worst punishment is that on getting red, you will be automatically bound to remote bindstones in the wilderness.