When you are an Elf-friend, a Dwarf-friend, an Isengard player or a Mordor player, you can always slay a mass of their NPC and make up alignments by slaying a mass of their enemies. I think should not happen. So I suggest to introduce a new game mechanic which will make the mod more balance and canon.
What is a debt of blood?
The debt of blood will apply on Elves, Dwarves, Isengard and Mordor NPC. For example, when you kill a Galadhrim Elf, your alignment bar of Lothlórien, Woodland Realm and High Elf will immediately turn to grey. That is for exceptions like Túrin Turambar killed Beleg Cúthalion by accident (Saeros fell into a ravine and died), and Tuor killed the traitor. Your alignment will still grow while it is grey, but it will be grey forever like a mark or a curse.
When you kill another Elf, your alignment bar of Lothlórien, Woodland Realm and High Elf will turn to -1 right away regardless of your current alignment. From now on, you only receive negative alignment from killing Elf, but killing their enemies won’t have any effects on the alignment, and it will never become 0 or above.
Explanation
Why Elven factions or Dwarven factions are tied in the debt of blood?
Because kinslaying is unacceptable for Elves, even the slayer is an Elf. For Dwarves, they can’t suffer any other race to oppress their kinsmen like Nár revenged for Thrór.
Why including Mordor and Isengard?
The debt of blood may not called this name in those two faction. It’s kind of betraying the Dark Lord or Saruman of Many Colour, and this time, this mechanic won’t apply to their allies. Sauron and Saruman have no mercy on traitors.
In the balance of the mod
Elves, Dwarves, Isengard, and Mordor have the best factional weapons or armours, so there should be a mechanic like this making you more careful to treat your allies, and you don’t want to displeasure them.