Maybe I'll elaborate my position a little bit.
I think this should be a step-by-step process.
First we have completely private rep, which is the current system atm (obv).
This has a lot of pros and a few cons. Pros include the ability to be anonymous when giving out +rep, just for that bit of added suspense
. Anonymity for neg reps is also available so that if you want to tell a troll off but not reveal yourself, its good. Cons: Anyone can pretend to be someone else and pass out negative reputation. They'd just have to sign it. This would cause more problems than neg rep flame wars. Signing your name each time is also a pain when several people in a thread deserve rep.
Second step is obviously a public rep option (my vote).
This eliminates the need to type out your name and the possibility that someone is pretending to be you and giving out neg reps. This also, I think, aids the whole neg rep wars thing because personally if someone had a beef with something I'd take it straight to them if it really really required me to. Else it's just a way of knowing who's not the one to talk straight to/avoid on the forums.
Third step (evolution).
Whatever we determine from this public rep system, we then decide what to do for the future. Geeman mentioned the "thank this post" system, which I've seen on another forum, and I think that could work. If we witness again that neg rep is just a warning before they get banned we may eliminate it in the future. I think we should hold off now, because well... I started out with 1 red blob when the rep system first came out. That was enough warning for me to try to behave. It may just work the same for others.
So let's just give the public rep a chance first and experiment and see what the results are. If it's worse, the powers that be can always scrap it.