Well, considering he's dropped over 30 something thousand in the past few months, I'd say its reacting accordingly

For the record I am usually not a fan of what eheath says...
Anyways, I find myself disagreeing with some of this discussion. (Using my karma as an example), it goes up when I make, say, 2-3 good, informative posts in Gear Talk or Site Discussion that help members moreso than when I make 10-20 bogus posts, like bumps or whatever.
I do believe that the karma system needs to be based more on "real" contributions; blogs, cults, good posts, rather than pics and vids and overall posts, which seem to lump everyone together and there is no separation of the good and the bad.
If you want a perfect example of a member who would "benefit" incredibly off the QUALITY idea, it would be Silence (not saying he's doing it for his benefit, just because I like him). As far as I know, he doesn't post much media and doesn't have a blog. However, the posts in the forums he makes are perfect. His karma should be top dog and its not right now, probably because of this.
Obviously there are kinks in the system, but I like it - I really do. I feel that its a decently accurate reflection of a member and their contributions. Obviously someone with 100 karma could be just as helpful as a person with 100,000 karma, but that's just another variable - chances are that person is new on NS. Anyways, I do like the system and I think Bishop is doing (or is going to do) a good job working out the kinks. Keep it up man!