Well, I think totally getting rid of the rep system could diminish community morale in some form. Think about it this way, giving someone a plus is a friendly way of saying I agree or appreciate what you said. Sometimes it's a nice way to boast another members feelings and it's done without much effort. It always makes me smile when someone reps me, even though I know my number is more do to my insane post count, lol. And I know when I do it, I generally am trying to give them a digital hug, thank you, congrats or hang in there. Depends. Either way I think it can have a positive impact on members.
The smites suck, but they are a small presence on the site. I think the positives are more on the side of the rep system. Still, I wish people would be nicer to each other and find a way to get along despite disagreements.